WorldatWork WC-C8 Online Practice Questions and Exam Preparation

WorldatWork WC-C8 Online Questions & Answers

• Question 21:

  Your company has had a strong fiscal year with a 15% increase in net income over the prior fiscal year. Share prices are at an all time high. Working with Finance, you have arrived at a 2.5% merit increase budget for the next fiscal year, a smaller increase than the last fiscal year. Finance has indicated that some large capital expenditures will be needed next year, so the company needs to conserve resources. Additionally, Legal is in final negotiations on a lawsuit that may be very costly to the company. Word of the smaller increases has line management concerned that they will lose their best performers. Given all of these factors, what is your best course of action?

  A. Implement the merit increase budget as is because the anticipated financial obligations have made it necessary
  B. Meet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases
  C. Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible
  D. Recommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount
  C. Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible

• Question 22:

  What best describes what forecasting helps the organization to do?

  A. Recognize possible issues and concerns that will drive budget planning
  B. Prepare quarterly and annual reports and their associated statements
  C. Withhold payroll taxes for all elements of compensation
  D. Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle
  A. Recognize possible issues and concerns that will drive budget planning

• Question 23:

  Regarding market position, a business with a high market share but low growth potential is typically referred to as what?

  A. A Star
  B. A Question Mark
  C. A Market Leader
  D. A Cash Cow
  D. A Cash Cow

• Question 24:

  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 plan
  B. The corporate objective
  C. The mission statement
  D. The competitive strategy
  D. The competitive strategy

• Question 25:

  You have been asked to develop a short-term incentive plan that motivates employees in business units to increase productivity. Your team has designed a plan that rewards managers and employees quarterly based on achievement against target on measures that should generate productivity increases that will self-fund the plan. When presenting the plan to senior management, what would be the best strategy to receive approval?

  A. Demonstrate how it is aligned to the rewards philosophy, principles and organizational business strategy
  B. Provide details on the plan design and measures and how they will be administered to employees at different levels
  C. Make the case that a self-funded plan poses no risk to the organization while creating the potential for significant gains
  D. Identify in advance the priorities of the various stakeholders and design your presentation to address any objections or perceptions they may have
  A. Demonstrate how it is aligned to the rewards philosophy, principles and organizational business strategy

• Question 26:

  Which of the following is the earnings available to equity owners after paying debt and taxes?

  A. EBIT
  B. EPS
  C. Net income
  D. Operating profit
  C. Net income

• Question 27:

  A fine jewelry chain distinguishes itself from the competition by focusing on carefully selected customers and building bonds to meet or exceed their needs and expectations. What strategy is this company using?

  A. Operational excellence
  B. Product/service leadership
  C. Customer intimacy
  D. Brand loyalty
  C. Customer intimacy

• Question 28:

  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.
  B. They are all sources of capital.

• Question 29:

  What best describes an effective approach for balancing multiple priorities and perspectives regarding compensation?

  A. Being firm and uncompromising in your decision-making
  B. Representing your view with data and relating it to business results
  C. Finding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking
  D. Giving priority to perspectives based on the job or influence level of the stakeholders
  B. Representing your view with data and relating it to business results

• Question 30:

  The "Value Store" retail company offers its customers low prices and ease of purchase by minimizing waste and striving for high efficiency. What strategy is the "Value Store" using?

  A. Operational excellence
  B. Product/service leadership
  C. Customer intimacy
  D. Brand loyalty
  A. Operational excellence