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Professional in Human Resources (PHR) Practice Exam – Questions and Correct Answers

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This document contains a comprehensive collection of Professional in Human Resources (PHR) practice exam questions with correct answers covering key HR topics, including strategic management, workforce planning, recruitment and selection, compensation and benefits, employee relations, employment law, organizational development, training, risk management, and compliance. It is designed to help candidates prepare for the PHR certification exam by providing multiple-choice questions that reflect common exam concepts and reinforce essential HR knowledge across the certification domains.

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PHR Practice Exam Questions
And Correct Answers


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

D. Delphi technique




Utilizing employee skills to keep or gain a competitive advantage is known as:

A. succession planning.

B. forecasting.

C. strategic management.

D. benchmarking.

C. strategic management.

,Which organizational structure best suits a business with numerous offices and
distribution centers?



A. Product

B. Hierarchical

C. Hybrid

D. Geographic

D. Geographic




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%

C. 171%




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.

A. Due to timing of cash transactions, it is a mix of current and previous years'
transactions.




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.

D. a high degree of interaction among participants is desired.




Which of the following reasons for termination of employment is most likely to
be disputed by the affected employee?



A. Business reorganization

B. Workplace closure

C. Union activity

D. Diminishing need for work

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