C8

What best describes an effective core technique for communicating with executives?A . Focus on negative issues first, such as compensation costs exceeding budget, to get their attentionB . Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they...

Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?A . Investors and Finance want to see money spent wisely. Legal must ensure compliance, and HR and operating departments want to see their needs taken into account...

When trying to achieve compromise and collaboration to achieve your goals, on which stakeholder(s) should you focus most of your efforts?A . The most senior leader with the highest level of authorityB . No one person. Identify your stakeholders and work to achieve consensus among the majority.C . Influencers and...

What is the most likely explanation for why compensation and rewards require a strong grasp of business acumen for compensation professionals?A . Because the internal and external environments are constantly changingB . Because the best interests of the organization take priority, which can lead to difficult decisions and implementation issuesC...

Which of the following best describes present value?A . The current value of holdingsB . The current value of holdings and how much it will grow over time at a given rate of returnC . The desired value in the future and what needs to be invested today to realize...

How are the compensation communication needs of managers different from those of individual employees?A . They aren’t. Managers are concerned about their compensation also.B . They are also responsible for merit increases, incentives and hiring so they have greater information needs.C . They tend to have more influence, so it...

What best describes the primary purpose of budgeting?A . Limiting spending to a fixed percentage of organizational revenueB . Making choices about spending based on expectations of performanceC . Increasing profitability of the business annually to maximize shareholder/owner valueD . Complying with local legislation and maintaining accurate records to prepare...

What is the most common term for the broad framework of principles and approaches that guide day-to-day decisions affecting the business, including how it positions itself in the market?A . The business planB . The corporate objectiveC . The mission statementD . The competitive strategyView AnswerAnswer: D

The “return” represented by the Total Shareholder Return (TSR) metric is the increase in what?A . EarningsB . SharesC . Market capitalizationD . Increased market value and reinvested dividends paidView AnswerAnswer: D

What choices are most commonly faced by companies in the decline phase of the business lifecycle?A . Whether to improve productivity, obtain new operating capital or generate new sales growthB . Whether to reinvest in existing products, create new products or maximize profits with current products as long as possibleC...