Phr Exam Study Guide: 387 Essential Questions & Answers Covering Business Management, Hr, And Employment Law Complete With 100% Correct Answers

PHR EXAM STUDY GUIDE: 387 ESSENTIAL QUESTIONS & ANSWERS COVERING BUSINESS MANAGEMENT, HR, AND EMPLOYMENT LAW COMPLETE WITH 100% CORRECT ANSWERS Question 1 An organization owes money to its vendors and suppliers. What is this called? A. Accounts Receivable B. Equity C. Accounts Payable D. Liabilities Correct Answer: C Explanation: Accounts Payable represents short-term liabilities incurred when a company buys goods or services on credit. It is a debt owed to suppliers and appears as a liability on the balance sheet. ________________________________________ Question 2 What is the term for money an organization's customers owe the organization? A. Accounts Receivable B. Accounts Payable C. Cash flow D. Gross profit margin Correct Answer: A Explanation: Accounts Receivable represents amounts customers owe for products or services delivered on credit. It is an asset on the balance sheet, reflecting future cash inflows. ________________________________________ Question 3 What are detailed steps a unit, department, or team will take to achieve short-term objectives? A. Strategies B. Mission statement C. Action Plans D. Vision statement Correct Answer: C Explanation: Action plans break down strategic goals into specific, measurable tasks with deadlines and assigned responsibilities, typically designed to achieve objectives within six months to one year. ________________________________________ Question 4 What is a modification to the Constitution or a law, which may be formal (written) or informal (unwritten)? A. Resolution B. Regulation C. Veto D. Amendment Correct Answer: D Explanation: An amendment changes legal documents. Formal amendments follow established ratification procedures; informal amendments occur through judicial interpretation or custom. ________________________________________ Question 5 What are the financial, physical, and sometimes intangible properties an organization owns? A. Liabilities B. Equity C. Assets D. Expenses Correct Answer: C Explanation: Assets include cash, inventory, buildings, equipment, patents, and goodwill. They provide future economic benefits and are reported on the balance sheet. ________________________________________ Question 6 What is the statement of a firm's financial position at a particular time? A. Income statement B. Cash flow statement C. Balance Sheet D. Break-even analysis Correct Answer: C Explanation: The balance sheet shows assets, liabilities, and equity at a specific point in time (e.g., year-end). It follows the formula: Assets = Liabilities + Equity. ________________________________________ Question 7 Which measurement approach provides an overall picture of an organization's performance as measured against goals in finance, customers, internal business processes, and learning and growth? A. SWOT analysis B. Balanced scorecard C. Break-even analysis D. Environmental scanning Correct Answer: B Explanation: The balanced scorecard translates strategy into performance measures across four perspectives: financial, customer, internal processes, and learning/growth, providing a holistic view. ________________________________________ Question 8 What is a proposal presented to a legislative body for possible enactment as a law? A. Regulation B. Resolution C. Bill D. Amendment Correct Answer: C Explanation: A bill is a draft statute submitted to a legislature for debate and approval. If passed, it becomes a law (act). Resolutions are limited in effect. ________________________________________ Question 9 Which analysis shows the point in time at which total revenue associated with a program equals the total cost of the program? A. Cost-benefit analysis B. Regression analysis C. Break-even analysis D. ROI analysis Correct Answer: C Explanation: Break-even analysis identifies the volume where total revenue equals total costs (fixed + variable). Beyond this point, the program generates profit. ________________________________________ Question 10 What is a description of an organizational challenge and possible alternative solutions, arguing for a specific solution? A. SWOT analysis B. Action plan C. Business Case D. Mission statement Correct Answer: C Explanation: A business case justifies a project or investment by comparing costs, benefits, risks, and alternatives, helping decision-makers choose the best course of action. ________________________________________ Question 11 To an operations department, what is the ability to yield output?