Pre-Summer Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code = getmirror

Home
WorldatWork
Executive Compensation
CECP
Certified Executive Compensation Professional Questions and Answers

Pass the WorldatWork Executive Compensation CECP Questions and answers with ExamsMirror

Practice at least 50% of the questions to maximize your chances of passing.

Exam CECP Premium Access

View all detail and faqs for the CECP exam

Go to Exam

863 Students Passed

93% Average Score

97% Same Questions

Viewing page 2 out of 3 pages

Viewing questions 11-20 out of questions

Questions # 11:

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:

500,000

840,000

8,000,000

9,700,000

Answer

Questions # 12:

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

Options:

Earnings

Market capitalization

Increased market value and reinvested dividends paid

Answer

Questions # 13:

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?

Options:

Start-up

Growth

Mature

Decline

Answer

Questions # 14:

What best describes an effective core technique for communicating with executives?

Options:

Focus on negative issues first, such as compensation costs exceeding budget, to get their attention

Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.

Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.

Recommend a solution that will solve the issue and explain why it is the best solution available.

Answer

Questions # 15:

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

Options:

Being firm and uncompromising in your decision-making

Representing your view with data and relating it to business results

Finding a compromise that may not appease all stakeholders but does not give any one group or person everything they are seeking

Giving priority to perspectives based on the job or influence level of the stakeholders

Answer

Questions # 16:

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

Options:

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

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

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

To promote consistency of communication regarding company performance and value

Answer

Questions # 17:

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

Options:

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.

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.

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.

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

Questions # 18:

How is the performance review related to pay?

Options:

It isn't. The performance review should not be related to pay decisions.

It is related to the extent that it affects variable pay awards. Base pay is based solely on tenure, prior experience and job skills.

It helps managers meet salary budgets by allowing them to adjust review results to align with available salary increase funds.

It provides managers a measure that can be used along with salary planning guidelines to determine appropriate rewards or consequences.

Answer

Questions # 19:

What is the term for the skills, technologies, applications and practices of continuous iterative exploration and investigation of past business performance used to gain insight and drive business planning?