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C8 - Business Acumen for Compensation Professional - Dump Information

Vendor : Worldatwork
Exam Code : C8
Exam Name : Business Acumen for Compensation Professional
Questions and Answers : 78 Q & A
Updated On : Click to Check Update
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C8 Questions and Answers



What question is answered by the organization’s mission statement?

  1. What direction will we take?

  2. How do we work?

  3. Why are we in business?

  4. How will we achieve our objectives?

Answer: C


What challenge is most likely faced by a business with low market share and high growth potential?

  1. Its ability to generate profits is unknown.

  2. It is in the worst market position and has insufficient resources to continue operations.

  3. It is unclear how to best utilize the high cash flow to sustain growth.

  4. Its excess resources are often used to develop other businesses that may not be mission -critical.

Answer: A


Which of the following factors has the greatest impact on how aggressive a stance (high vs. low) an organization will take in terms of where it positions itself against the market with its compensation strategy?

  1. The industry it operates in

  2. The bottom line

  3. The organizational headcount

  4. The risk tolerance of compensation leaders

Answer: B


Regarding key competencies for financial management, HR management and resource management, what sets top performers apart?

  1. The level of formal education in each area

  2. The ability to prioritize which is most critical in any given situation and allocate time and resources accordingly

  3. The ability to tie them together, distill key messages and make impactful decisions

  4. Effective interpersonal and communication skills that can overshadow minor deficiencies in any one area

Answer: C


Quarterly financial reports typically include data for a given quarter compared to what?

  1. The previous quarter

  2. The budget

  3. The same quarter in the previous year, plus the current six-month or nine-month cumulative comparables

  4. The aggregate performance of the same quarter in the previous three years

Answer: C


An organization whose focus is on obtaining capital, marketing products or services, sales growth and cash conservation is most likely to be in what stage of the business lifecycle?

  1. Start-up

  2. Growth

  3. Mature

  4. Decline

Answer: A


Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?

  1. 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 to attract, retain and motivate a high quality workforce.

  2. Operating departments and HR understand the company must live within its means and Finance cannot allocate funds to a budget if it is likely that profitability will be adversely affected.

  3. Investors want to maximize gains and want to see compensation tightly controlled and Legal needs to ensure that compensation plans do not attract undue scrutiny.

  4. Operating departments view compensation as it applies to them, HR must balance available resources to attract, retain and motivate employees and Finance knows the value of a motivated workforce and will provide the budget necessary to achieve it.

Answer: A


Gross margin is which of the following, as percent of revenue?

  1. Revenue minus cost of goods sold

  2. Expenses plus taxes and depreciation

  3. Gross profit minus expenses

  4. Cost of goods sold

Answer: A


Regarding fixed and variable costs, what are Finance’s primary concerns?

  1. Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

  2. Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

  3. Fixed costs and variable costs are equally important and both should be kept to a minimum.

  4. Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Answer: B


In what stage of the business lifecycle do companies typically begin standardizing procedures through policy creation?

  1. Start-up

  2. Growth

  3. Mature

  4. Decline

Answer: B

Worldatwork C8 Exam (Business Acumen for Compensation Professional) Detailed Information

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HR is partly unpopular since it makes people behave and enforces guidelines about how every worker, together with executives, need to have interaction with others. in spite of this, its complicated to disclaim that HR is regularly perceived with the aid of corporate leaders as being out of step with the leisure of the enterprise. indeed, according to a piece of writing in the Fall 2015 subject of americans + strategy, business leaders both internal and out of doors the container consistently cost HR as moderately satisfactory at most efficient in terms of potential and effectiveness. the most widely wide-spread and persistent criticism is that HR cant hook up with the language of finance, which defines how company operates. each HR professional can be sure that this doesnt cling authentic for himself or herself via developing company acumen. Whats the gold standard option to try this? listed below are three suggestions for sharpening your strategic knowledge in 2016: admire that decent HR is ready making selections. There is not any single top of the line-practice mannequin. rather, your policies may still be predicated on what works neatly on your certain business. It makes experience for some businesses to outsource their hiring, for others to stay away from the use of incentive pay and for still others to refrain from using personnel at all for certain tasks. understanding what to do when is the keyand that requires figuring out company strategy. this is step one to determining the other ways groups can compete and be triumphant. gain knowledge of enough finance to have in mind the factors that force shareholder cost. It isnt ample to take into account a way to calculate a fee of return on funding. 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