SHRM CP EXAMS SCRIPT 2026 QUESTIONS AND
ANSWERS SURE A+
✔✔Residual risk - ✔✔Amount of uncertainty that remains after all risk management
efforts have been exhausted.
✔✔Protected class - ✔✔People who are covered under a particular federal or state anti-
discrimination law.
✔✔Prudent person rule - ✔✔States that an Employee Retirement Income Security Act
plan fiduciary has legal and financial obligations not to take more risks when investing
employee benefit program funds than a reasonable knowledgeable, prudent investor
would under similar circumstances.
✔✔Public comment period - ✔✔Time allowed for the public to express its views and
concerns regarding an action of an administrative agency.
✔✔Quid pro quo harassment - ✔✔Type of sexual harassment that occurs when an
employee is forces to choose between giving in to a superior's sexual demands and
forfeiting an economic benefit such as a pay increase, a promotion, or continues
employment.
,✔✔Portal-to-Portal Act - ✔✔U.S. act that defines what is included as hours worked and
is therefore compensable and a factor in calculating overtime.
✔✔Pregnancy Discrimination Act - ✔✔U.S. act that prohibits discrimination on the basis
of pregnancy, childbirth, or related medical conditions.
✔✔Principal-agent problem - ✔✔Situation in which and agent (e.g. an employee) make
decisions for a principal (e.g. an employer) potentially on the basis of personal
incentives that may not be aligned with the agent's incentives.
✔✔Process alignment - ✔✔Extent to which underlying operations such as IT, finance,
or HR integrate across locations.
✔✔Overtime pay - ✔✔Required for nonexempt workers under U.S. Fair Labor
Standards Act at 1.5 time the regular rate of pay for hours worked over 40 in a
workweek.
✔✔Patient Protections and Affordable Care Act (PPACA) - ✔✔2010 U.S. law the
requires virtually all citizens and legal residents to have minimum health coverage and
requires employers with more than 50 full-time employees to provide health coverage
that meets minimum benefit specifications or pay a penalty.
✔✔Pension Benefit Guaranty Corporation (PBGC) - ✔✔Set up by U.S. Employee
Retirement Income Security Act to insure payment of benefits in the even that a private-
sector defined benefit pension plan terminates with insufficient funds to pay the benefits.
✔✔Phillips v. Martin Marietta Corporation - ✔✔1971 U.S. case that stated than an
employer may not, in the absence of business necessity, refuse to hire women with
preschool aged children while hiring men with such children.
✔✔Occupational Safety and Health Act (OSH) - ✔✔U.S. act that established the first
national policy for safety and health and continues to deliver standards that employers
must meet to guarantee the health and safety of their employees.
✔✔Occupational Safety and Health Administration (OSHA) - ✔✔U.S. agency that
administers and enforces the Occupational Safety and Health Act of 1970.
✔✔Offshoring - ✔✔Situation in which a company relocated processes or production to
an international location by means of subsidiaries or 3rd party affiliates.
✔✔Older Workers Benefit Protection Act (OWBPA) - ✔✔U.S. act that amended the Age
Discrimination in Employment Act to included all employee benefits; also provided
standards that an employee's waiver of the right to sue for age discrimination must meet
in order to be upheld by a court.
, ✔✔NLRB v. Weingarten - ✔✔Landmark 1975 U.S. labor relations case the dealt with
the right of a unionized employee to have another person present during certain
investigatory interviews.
✔✔Nonexempt employees - ✔✔Employees covers under U.S. Fair Labor Standards Act
regulations, including minimum wage and overtime pay requirements.
✔✔Occupational illness - ✔✔Medical condition or disorder, other than one resulting
from an occupational injury, caused by exposure to environmental factors associated
with employment.
✔✔Occupational injury - ✔✔Injury that results from a work-related accident or exposure
involving a single incident int he work environment.
✔✔National Defense Authorization Acts (NDAA) - ✔✔U.S. acts that expanded FMLA
leave for employees with family members who are covered members of the military.
✔✔National Federation of Independent Business v Sebelius - ✔✔U.S. Supreme Court
ruling that Patient Protections and Affordable Care Act requirement that individuals
purchase health insurance was constitutional but that requirement that states expand
Medicaid was not.
✔✔National Labor Relations Act (NLRA) - ✔✔U.S. act that protects and encourages the
growth of the union movement. The act established workers rights to organize and
bargain collectively with the employers; also known as the Wagner Act.
✔✔National origin - ✔✔Refers to the country (including those that no longer exist) of
one's birth or of one's ancestors' birth.
✔✔Low-context culture - ✔✔Society in which people tend to have many social
connections but of shorter duration and where behavior and beliefs may need to be
described explicitly so that those coming into the cultural environment know how to
behave.
✔✔Merger/acquisition (M&A) - ✔✔Combination of 2 separate firms either by their
joining together as relative equals (merger) or by one acquiring the other (acquisition).
✔✔Moral hazard - ✔✔Situation in which one party engages in risky behavior knowing
that is is protected against the risk because another party will incur any resulting loss.
✔✔Multinational enterprise (MNE) - ✔✔Organization that owns or controls production or
services facilities in one or more countries other than the home country.
ANSWERS SURE A+
✔✔Residual risk - ✔✔Amount of uncertainty that remains after all risk management
efforts have been exhausted.
✔✔Protected class - ✔✔People who are covered under a particular federal or state anti-
discrimination law.
✔✔Prudent person rule - ✔✔States that an Employee Retirement Income Security Act
plan fiduciary has legal and financial obligations not to take more risks when investing
employee benefit program funds than a reasonable knowledgeable, prudent investor
would under similar circumstances.
✔✔Public comment period - ✔✔Time allowed for the public to express its views and
concerns regarding an action of an administrative agency.
✔✔Quid pro quo harassment - ✔✔Type of sexual harassment that occurs when an
employee is forces to choose between giving in to a superior's sexual demands and
forfeiting an economic benefit such as a pay increase, a promotion, or continues
employment.
,✔✔Portal-to-Portal Act - ✔✔U.S. act that defines what is included as hours worked and
is therefore compensable and a factor in calculating overtime.
✔✔Pregnancy Discrimination Act - ✔✔U.S. act that prohibits discrimination on the basis
of pregnancy, childbirth, or related medical conditions.
✔✔Principal-agent problem - ✔✔Situation in which and agent (e.g. an employee) make
decisions for a principal (e.g. an employer) potentially on the basis of personal
incentives that may not be aligned with the agent's incentives.
✔✔Process alignment - ✔✔Extent to which underlying operations such as IT, finance,
or HR integrate across locations.
✔✔Overtime pay - ✔✔Required for nonexempt workers under U.S. Fair Labor
Standards Act at 1.5 time the regular rate of pay for hours worked over 40 in a
workweek.
✔✔Patient Protections and Affordable Care Act (PPACA) - ✔✔2010 U.S. law the
requires virtually all citizens and legal residents to have minimum health coverage and
requires employers with more than 50 full-time employees to provide health coverage
that meets minimum benefit specifications or pay a penalty.
✔✔Pension Benefit Guaranty Corporation (PBGC) - ✔✔Set up by U.S. Employee
Retirement Income Security Act to insure payment of benefits in the even that a private-
sector defined benefit pension plan terminates with insufficient funds to pay the benefits.
✔✔Phillips v. Martin Marietta Corporation - ✔✔1971 U.S. case that stated than an
employer may not, in the absence of business necessity, refuse to hire women with
preschool aged children while hiring men with such children.
✔✔Occupational Safety and Health Act (OSH) - ✔✔U.S. act that established the first
national policy for safety and health and continues to deliver standards that employers
must meet to guarantee the health and safety of their employees.
✔✔Occupational Safety and Health Administration (OSHA) - ✔✔U.S. agency that
administers and enforces the Occupational Safety and Health Act of 1970.
✔✔Offshoring - ✔✔Situation in which a company relocated processes or production to
an international location by means of subsidiaries or 3rd party affiliates.
✔✔Older Workers Benefit Protection Act (OWBPA) - ✔✔U.S. act that amended the Age
Discrimination in Employment Act to included all employee benefits; also provided
standards that an employee's waiver of the right to sue for age discrimination must meet
in order to be upheld by a court.
, ✔✔NLRB v. Weingarten - ✔✔Landmark 1975 U.S. labor relations case the dealt with
the right of a unionized employee to have another person present during certain
investigatory interviews.
✔✔Nonexempt employees - ✔✔Employees covers under U.S. Fair Labor Standards Act
regulations, including minimum wage and overtime pay requirements.
✔✔Occupational illness - ✔✔Medical condition or disorder, other than one resulting
from an occupational injury, caused by exposure to environmental factors associated
with employment.
✔✔Occupational injury - ✔✔Injury that results from a work-related accident or exposure
involving a single incident int he work environment.
✔✔National Defense Authorization Acts (NDAA) - ✔✔U.S. acts that expanded FMLA
leave for employees with family members who are covered members of the military.
✔✔National Federation of Independent Business v Sebelius - ✔✔U.S. Supreme Court
ruling that Patient Protections and Affordable Care Act requirement that individuals
purchase health insurance was constitutional but that requirement that states expand
Medicaid was not.
✔✔National Labor Relations Act (NLRA) - ✔✔U.S. act that protects and encourages the
growth of the union movement. The act established workers rights to organize and
bargain collectively with the employers; also known as the Wagner Act.
✔✔National origin - ✔✔Refers to the country (including those that no longer exist) of
one's birth or of one's ancestors' birth.
✔✔Low-context culture - ✔✔Society in which people tend to have many social
connections but of shorter duration and where behavior and beliefs may need to be
described explicitly so that those coming into the cultural environment know how to
behave.
✔✔Merger/acquisition (M&A) - ✔✔Combination of 2 separate firms either by their
joining together as relative equals (merger) or by one acquiring the other (acquisition).
✔✔Moral hazard - ✔✔Situation in which one party engages in risky behavior knowing
that is is protected against the risk because another party will incur any resulting loss.
✔✔Multinational enterprise (MNE) - ✔✔Organization that owns or controls production or
services facilities in one or more countries other than the home country.
