Pass the WorldatWork Executive Compensation CECP Questions and answers with CertsForce

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Questions # 1:

The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility’s net operating profit after taxes was 10,500,000. What was the economic value added (EVA) using the EVA formula?

Options:

A.

500,000


B.

840,000


C.

8,000,000


D.

9,700,000


Expert Solution
Questions # 2:

Regarding fixed and variable costs, what tends to happen as revenue increases?

Options:

A.

Variable costs decrease


B.

Fixed costs decrease


C.

Variable costs increase and consume a higher percent of revenue


D.

Fixed costs remain the same and consume a lower percent of revenue


Expert Solution
Questions # 3:

The “return” represented by the Total Shareholder Return (TSR) metric is the increase in what?

Options:

A.

Earnings


B.

Shares


C.

Market capitalization


D.

Increased market value and reinvested dividends paid


Expert Solution
Questions # 4:

Which of the following is the best example of a variable cost?

Options:

A.

Audit fees


B.

Rent


C.

Maintenance


D.

Shipping


Expert Solution
Questions # 5:

Who are you most likely to hear from if there are questions about an employee’s compensation?

Options:

A.

The employee


B.

A concerned co-worker


C.

The employee’s manager


D.

The employee’s department head


Expert Solution
Questions # 6:

Which of the following is primarily focused on giving special attention to employee actions, efforts, behavior or performance?

Options:

A.

Compensation


B.

Benefits


C.

Career opportunities


D.

Recognition    


Expert Solution
Questions # 7:

What most accurately describes a reason why organizations use financial reports?

Options:

A.

To differentiate company financial data from industry competitors to prevent loss of proprietary information


B.

To provide subjective information to key constituents that reflects the company’s performance in the most favorable manner depending on stakeholder priorities


C.

To create a historical record of financial performance and identify trends that may justify changes in strategy


D.

To promote consistency of communication regarding company performance and value


Expert Solution
Questions # 8:

What do working capital metrics evaluate?

Options:

A.

The change in working capital over a specific period of time, typically one year


B.

A company’s efficiency in converting short-term capital into cash


C.

A company’s mean capital expenditure per employee


D.

The amount of cash needed to meet the company’s short-term obligations


Expert Solution
Questions # 9:

What best describes the two primary elements of compensation?

Options:

A.

Fixed pay and variable pay


B.

Base pay and annual incentives


C.

Direct and indirect compensation


D.

Salary and hourly rate   


Expert Solution
Questions # 10:

What best describes the most effective tactic for getting stakeholders’ attention and buy-in?

Options:

A.

Ask them to review or provide feedback, especially on something you have done for them


B.

Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position


C.

Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections


D.

Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern


Expert Solution
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