SHRM CP CORRECT FINAL EXAM QUESTIONS AND
ANSWERS SURE A+
✔✔Strategic planning - ✔✔The process of setting goals and designing a path toward a
competitive position.
✔✔Metrics - ✔✔Performance parameters based on the relationship between 2 or more
measures.
✔✔Mission statement - ✔✔Statement that specifies what activities an organization
intends to pursue and what course management has carted for the future; a concise
statement of its strategy.
✔✔Net profit margin - ✔✔Ratio of net income (gross sales minus expenses and taxes)
to net sales.
✔✔Organizational culture - ✔✔The basic beliefs and customs shared by members of an
organization that contribute to an organization's sense of its identity.
✔✔Income statement - ✔✔Statement that reports revenues, expenses, and net income
(profit) for a specified period.
,✔✔Lagging indicator - ✔✔Type of metric that describes an activity that has already
occurred.
✔✔Leading indicator - ✔✔Type of metric that describes an activity that can change
future performance and indicate higher degree of success in achieving strategic goals.
✔✔Liabilities - ✔✔Organization's debts and other financial obligations.
✔✔Due diligence - ✔✔Necessary level of care and attention that is taken to investigate
an action before it is taken.
✔✔Environmental scanning - ✔✔Process that involves a systematic survey and
interpretation of relevant data to identify external opportunities and threats and to
assess how these factors affect the organization currently and how they are likely to
affect the organization in the future.
✔✔Equity - ✔✔Amount of owners' or shareholders' portion of a business.
✔✔Gross profit margin - ✔✔Ratio of gross profit to net sales.
✔✔Benchmarking - ✔✔Process that compares performance levels and/or processes of
one entity with those of another to identify performance gaps and set goals aimed at
improving performance.
✔✔Blue ocean strategies - ✔✔Strategies that generate competitive advantage by
creating a new marketplace arena in which there are no other competitors.
✔✔Business case - ✔✔Presentation to management that establishes that a specific
problem exists and argues that the proposed solution is the best way to solve the
problem in terms of time, cost efficiency, and probability of success.
✔✔Cash flow statement - ✔✔Statement the shows incoming and outgoing cash in the
areas of operations, investments, and financing and remaining cash reserves; reflects
an organization's ability to meet its current and short-term obligations.
✔✔Accounts payable - ✔✔Money an organization owed its vendors and suppliers.
✔✔Accounts receivable - ✔✔Money an organization's customers owe the organization.
✔✔Assets - ✔✔Financial, physical, and sometimes intangible properties an organization
owns.
✔✔Balance sheet - ✔✔Statement that reports the financial position of the organization
at a specific point in time; shows assets, liabilities, and shareholder equity.
, ✔✔Vicarious liability - ✔✔Legal doctrine under which a party can be held liable for the
wrongful actions of another party.
✔✔Weingarten rights - ✔✔Union employees' right in U.S. to have a union
representative or coworker present during an investigatory interview.
✔✔Worker Adjustment and Retraining Notification (WARN) Act - ✔✔U.S. act that
requires some employers to give a minimum of 60 days' notice if a plant is to close or is
mass layoffs will occur.
✔✔Workweek - ✔✔Any fixed, recurring period of 168 consecutive hours (7 days time 24
hours = 168 hrs)
✔✔Uniform Guidelines on Employee Selection Procedures - ✔✔Procedural document
designed to assist employers in complying with federal regulations prohibiting
discrimination.
✔✔Uniformed Services Employment and Reemployment Rights Act (USERRA) -
✔✔U.S. act that protects the employment reemployment, and retention rights of
persons who serve or have served in the uniformed services.
✔✔Vesting - ✔✔Process by which a retirement benefit becomes nonforfeitable.
✔✔Veto - ✔✔Action of rejecting a bill or statute.
✔✔Stakeholders - ✔✔All those affected by an organization's social, environmental, and
economic impact shareholders, employees, customers, suppliers, regulators, and local
communities.
✔✔Sustainability - ✔✔Practices that balance economic, social, and environmental
interests to secure the interests of present and future generations.
✔✔Totaization agreements - ✔✔Bilateral agreements entered into by many countries to
eliminate double taxation for individuals on international assignments.
✔✔Triple bottom line - ✔✔Economic, social, and environmental impact metrics used to
determine an organization's success.
✔✔Risk management - ✔✔Identification, evaluation, and control of risk that may affect
an organization, typically incorporating the use of insurance and other strategies.
✔✔Risk position - ✔✔An organization's desired gain or acceptable loss in value.
ANSWERS SURE A+
✔✔Strategic planning - ✔✔The process of setting goals and designing a path toward a
competitive position.
✔✔Metrics - ✔✔Performance parameters based on the relationship between 2 or more
measures.
✔✔Mission statement - ✔✔Statement that specifies what activities an organization
intends to pursue and what course management has carted for the future; a concise
statement of its strategy.
✔✔Net profit margin - ✔✔Ratio of net income (gross sales minus expenses and taxes)
to net sales.
✔✔Organizational culture - ✔✔The basic beliefs and customs shared by members of an
organization that contribute to an organization's sense of its identity.
✔✔Income statement - ✔✔Statement that reports revenues, expenses, and net income
(profit) for a specified period.
,✔✔Lagging indicator - ✔✔Type of metric that describes an activity that has already
occurred.
✔✔Leading indicator - ✔✔Type of metric that describes an activity that can change
future performance and indicate higher degree of success in achieving strategic goals.
✔✔Liabilities - ✔✔Organization's debts and other financial obligations.
✔✔Due diligence - ✔✔Necessary level of care and attention that is taken to investigate
an action before it is taken.
✔✔Environmental scanning - ✔✔Process that involves a systematic survey and
interpretation of relevant data to identify external opportunities and threats and to
assess how these factors affect the organization currently and how they are likely to
affect the organization in the future.
✔✔Equity - ✔✔Amount of owners' or shareholders' portion of a business.
✔✔Gross profit margin - ✔✔Ratio of gross profit to net sales.
✔✔Benchmarking - ✔✔Process that compares performance levels and/or processes of
one entity with those of another to identify performance gaps and set goals aimed at
improving performance.
✔✔Blue ocean strategies - ✔✔Strategies that generate competitive advantage by
creating a new marketplace arena in which there are no other competitors.
✔✔Business case - ✔✔Presentation to management that establishes that a specific
problem exists and argues that the proposed solution is the best way to solve the
problem in terms of time, cost efficiency, and probability of success.
✔✔Cash flow statement - ✔✔Statement the shows incoming and outgoing cash in the
areas of operations, investments, and financing and remaining cash reserves; reflects
an organization's ability to meet its current and short-term obligations.
✔✔Accounts payable - ✔✔Money an organization owed its vendors and suppliers.
✔✔Accounts receivable - ✔✔Money an organization's customers owe the organization.
✔✔Assets - ✔✔Financial, physical, and sometimes intangible properties an organization
owns.
✔✔Balance sheet - ✔✔Statement that reports the financial position of the organization
at a specific point in time; shows assets, liabilities, and shareholder equity.
, ✔✔Vicarious liability - ✔✔Legal doctrine under which a party can be held liable for the
wrongful actions of another party.
✔✔Weingarten rights - ✔✔Union employees' right in U.S. to have a union
representative or coworker present during an investigatory interview.
✔✔Worker Adjustment and Retraining Notification (WARN) Act - ✔✔U.S. act that
requires some employers to give a minimum of 60 days' notice if a plant is to close or is
mass layoffs will occur.
✔✔Workweek - ✔✔Any fixed, recurring period of 168 consecutive hours (7 days time 24
hours = 168 hrs)
✔✔Uniform Guidelines on Employee Selection Procedures - ✔✔Procedural document
designed to assist employers in complying with federal regulations prohibiting
discrimination.
✔✔Uniformed Services Employment and Reemployment Rights Act (USERRA) -
✔✔U.S. act that protects the employment reemployment, and retention rights of
persons who serve or have served in the uniformed services.
✔✔Vesting - ✔✔Process by which a retirement benefit becomes nonforfeitable.
✔✔Veto - ✔✔Action of rejecting a bill or statute.
✔✔Stakeholders - ✔✔All those affected by an organization's social, environmental, and
economic impact shareholders, employees, customers, suppliers, regulators, and local
communities.
✔✔Sustainability - ✔✔Practices that balance economic, social, and environmental
interests to secure the interests of present and future generations.
✔✔Totaization agreements - ✔✔Bilateral agreements entered into by many countries to
eliminate double taxation for individuals on international assignments.
✔✔Triple bottom line - ✔✔Economic, social, and environmental impact metrics used to
determine an organization's success.
✔✔Risk management - ✔✔Identification, evaluation, and control of risk that may affect
an organization, typically incorporating the use of insurance and other strategies.
✔✔Risk position - ✔✔An organization's desired gain or acceptable loss in value.
