C8 Online Practice Questions and Answers

What best describes a necessary skill and/or behavior in relation to business acumen?

A. An understanding of the culture and subcultures of your organization

B. The capacity to manage multiple projects and priorities and meet deadlines

C. A willingness to take on additional duties and responsibilities when resources are limited

D. A thorough understanding of the products and/or services your organization provides

What is the most accurate definition of organizational vision?

A. A description of who the organization is, where it is headed and what it wants for the future

B. A written explanation of the intention or purpose of the organization and why it is in business

C. A statement of what kind of organization it wants to be and the guiding principles and/or beliefs shared by stakeholders

D. A detailed account of the organization's goals, directions to achieve them and how it will compete

Information on the annual report shows results for what time period?

A. The calendar year from January 1 to December 31

B. The fiscal year, which matches the calendar year from January 1 to December 31

C. The fiscal year, which shows results from July 1 to June 30

D. The fiscal year, which may match the calendar year or may be a different 12-month period, depending on the company

The XYZ Company produces innovative products and brings them to market in advance of their competitors. What strategy is XYZ using?

A. Operational excellence

B. Product/service leadership

C. Customer intimacy D. Brand loyalty

To ensure appropriate funding levels, the compensation professional must generally do which of the following?

A. Possess a high level of education and competency in accounting principles

B. Determine which programs are crucial to the enterprise and which programs are expendable

C. Partner with multiple departments and external consultants and vendors

D. Demonstrate broad understanding of principles of financial management and business expertise

What do profits, equity and debt all have in common?

A. They are all reported on the balance sheet.

B. They are all sources of capital.

C. They all incur the same costs to the business.

D. Nothing. Each of these is a different financial metric.

How is the purpose of a non-profit organization typically communicated?

A. Explained throughout the mission, vision, values and strategy

B. Implied in the mission, vision and strategy and specifically explained on the organization's website

C. Reflected in the mission, vision, values and strategy although often not stated directly

D. Documented internally but not released to the public to protect trade secrets and maintain competitive advantage

The Delta Company has experienced increased turnover in the past two years. Data from exit interviews indicate that most of those leaving did so for better opportunities and higher compensation. If Delta pays at the highest percentile of the market for their peer group, what data analysis should they do?

A. Additional quantitative analysis to determine whether pay rates are truly competitive or existing data are unreliable

B. Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns

C. Qualitative data collection in the form of an employee survey with questions about employee satisfaction with pay levels

D. No additional data analysis is needed. Delta should increase pay rates based on the existing data to decrease turnover.

What is the most accurate statement regarding the effect of compensation plans on the organization?

A. They typically have the greatest effect on net income and operating results of any organizational expense or program

B. Their success or failure is closely tied to the success or failure of organizationwide goals and objectives

C. They have very little effect as long as they are managed effectively and efficiently

D. They affect the organization's overall financial status and impact multiple stakeholders across most, if not all, business units

Which of the following best describes present value?

A. The current value of holdings

B. The current value of holdings and how much it will grow over time at a given rate of return

C. The desired value in the future and what needs to be invested today to realize that amount

D. The difference between the desired value in the future and the current value as a percentage of the desired value