Free Practice Questions for Worldatwork CECP Exam

Question 1

Regarding presentations to executives, which of the following is most accurate?

AKeep them brief

BUse multiple media

CInclude all details related to the issue

DLeave backup data out of the presentation so there is time to develop an effective response to unexpected questions

Correct Answer: A. Keep them brief

Question 2

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

AExplained throughout the mission, vision, values and strategy

BImplied in the mission, vision and strategy and specifically explained on the organization's website

CReflected in the mission, vision, values and strategy although often not stated directly

DDocumented internally but not released to the public to protect trade secrets and maintain competitive advantage

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

Question 3

What is the most accurate definition of organizational vision?

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

BA written explanation of the intention or purpose of the organization and why it is in business

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

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

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

Question 4

What metric should compensation professionals pay closest attention to for ensuring alignment between the compensation strategy and the HR and business strategies?

AVariable pay costs as a percent of total compensation

BTotal compensation expense for the business, including base pay and variable pay

CReward costs as a percent of total operating costs

DThe organization's market compa-ratio

Correct Answer: C. Reward costs as a percent of total operating costs

Question 5

Which of the following best describes the guiding principles and/or beliefs shared by stakeholders in an organization?

AMission

BVision

CValues

DStrategy

Correct Answer: C. Values

Question 6

What best describes a benefit of business executive with regard to career development?

AThe ability to display confidence and decisiveness that will inspire others and make you a better leader

BA greater likelihood of promotion, especially when you are competing with individuals with more experience

CIncreased marketability, which will lead to qualification for opportunities outside of human resources

DIt is critical to your career development and a deficiency is very likely to hinder career advancement and success.

Correct Answer: A. The ability to display confidence and decisiveness that will inspire others and make you a better leader

Question 7

Which of the following best describes present value?

AThe current value of holdings

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

CThe desired value in the future and what needs to be invested today to realize that amount

DThe difference between the desired value in the future and the current value as a percentage of the desired value

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

Question 8

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

AWhat direction will we take?

BHow do we work?

CWhy are we in business?

DHow will we achieve our objectives?

Correct Answer: C. Why are we in business?

Question 9

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

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

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

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

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

Correct Answer: A. Ask them to review or provide feedback, especially on something you have done for them

Question 10

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

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

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

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

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

Correct Answer: B. Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.