WorldatWork C1 real exam prep : Regulatory Environments for Compensation Programs

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WorldatWork C1 Exam Syllabus Topics:

WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What best describes the primary purpose of budgeting?

A) Making choices about spending based on expectations of performance
B) Increasing profitability of the business annually to maximize shareholder/owner value
C) Limiting spending to a fixed percentage of organizational revenue
D) Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents

2. Employer-sponsored death benefits are most commonly based on which of the following?

A) The employee's premium contributions
B) The size of the employee's family
C) The employee's health history
D) The employee's annual salary

3. 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?

A) 9,700,000
B) 840,000
C) 8,000,000
D) 500,000

4. What best describes a use of strategic analysis?

A) Understanding your business and its competitive strengths and weaknesses
B) Evaluating prior year performance for the narrative portion of annual financial reports
C) Forecasting profit, growth and investment performance to develop realistic budgets
D) Pricing your products appropriately

5. Which of the following might be an example of the influence of the Americans with Disabilities Act on compensation?

A) Companies should determine pay based on physical skills
B) Companies must conduct pre-employment medical exams on all new employees
C) Special promotion requirements must be developed for the disabled employee
D) Job descriptions must be written to ensure they cover the critical functions of the job

Solutions: