PHR Practice Exam Questions and Correct Answers
Question 1
Which of the following forecasting methods relies on collecting independent evaluations from experts and summarizing
the information?
A. Assessment center
B. Nominal group technique
C. Time-series analysis
D. Delphi technique
Correct Answer
D. Delphi technique
Question 2
Utilizing employee skills to keep or gain a competitive advantage is known as:
A. succession planning.
B. forecasting.
C. strategic management.
D. benchmarking.
Correct Answer
C. strategic management.
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,Question 3
Which organizational structure best suits a business with numerous offices and distribution centers?
A. Product
B. Hierarchical
C. Hybrid
D. Geographic
Correct Answer
D. Geographic
Question 4
A project is expected to net $600,000 in income with project costs of $350,000. What is the expected ROI for this project?
A. 57%
B. 72%
C. 171%
D. 277%
Correct Answer
C. 171%
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, Question 5
Which of the following statements is true regarding a cash flow statement?
A. Due to timing of cash transactions, it is a mix of current and previous years' transactions.
B. It only includes the cash transactions from the year in which it is prepared.
C. Cash flowing out in a given period equals the amount recorded in accounts payable.
D. Cash flowing in during a given period equals sales plus accounts receivable.
Correct Answer
A. Due to timing of cash transactions, it is a mix of current and previous years' transactions.
Question 6
A group process for organizational diagnosis is used when:
A. structure and the number of participants are known.
B. confidentiality and trust relationships are necessary.
C. larger population input and baseline data are needed.
D. a high degree of interaction among participants is desired.
Correct Answer
D. a high degree of interaction among participants is desired.
Page 3 of 25
Question 1
Which of the following forecasting methods relies on collecting independent evaluations from experts and summarizing
the information?
A. Assessment center
B. Nominal group technique
C. Time-series analysis
D. Delphi technique
Correct Answer
D. Delphi technique
Question 2
Utilizing employee skills to keep or gain a competitive advantage is known as:
A. succession planning.
B. forecasting.
C. strategic management.
D. benchmarking.
Correct Answer
C. strategic management.
Page 1 of 25
,Question 3
Which organizational structure best suits a business with numerous offices and distribution centers?
A. Product
B. Hierarchical
C. Hybrid
D. Geographic
Correct Answer
D. Geographic
Question 4
A project is expected to net $600,000 in income with project costs of $350,000. What is the expected ROI for this project?
A. 57%
B. 72%
C. 171%
D. 277%
Correct Answer
C. 171%
Page 2 of 25
, Question 5
Which of the following statements is true regarding a cash flow statement?
A. Due to timing of cash transactions, it is a mix of current and previous years' transactions.
B. It only includes the cash transactions from the year in which it is prepared.
C. Cash flowing out in a given period equals the amount recorded in accounts payable.
D. Cash flowing in during a given period equals sales plus accounts receivable.
Correct Answer
A. Due to timing of cash transactions, it is a mix of current and previous years' transactions.
Question 6
A group process for organizational diagnosis is used when:
A. structure and the number of participants are known.
B. confidentiality and trust relationships are necessary.
C. larger population input and baseline data are needed.
D. a high degree of interaction among participants is desired.
Correct Answer
D. a high degree of interaction among participants is desired.
Page 3 of 25
