PHR Certification Exam Questions With
Correct Verified Answers 2023/2024
Accounts Payable - Correct answer-Money an organization owes its vendors and
suppliers.
Accounts Receivable - Correct answer-Money an organization's customers owe the
organization.
Action Plans - Correct answer-Detailed steps a unit, department, or team will take in
order to achieve short-term objectives.
Amendment - Correct answer-Modification or the Constitution or a law; modification may
be either formal (written) or informal (unwritten).
Assets - Correct answer-Financial, physical, and sometiems intangible properties an
organization owns.
Balance Sheet - Correct answer-Statement of a firm's financial position at a particular
time.
Balanced scorecard - Correct answer-Measurement approach that provides an overall
picture of an organization's performance as measured against goals in finance,
customers, internal business processes, and learning and growth.
Bill - Correct answer-Proposal presented to a legislative body for possible enactment as
a law.
Break-even analysis - Correct answer-Analysis that shows point in time at which total
revenue associated with a program is equal to the total cost of the program.
Business Case - Correct answer-Description of an organizational challenge and
possible alternative solutions, arguing for specific solution.
Capacity - Correct answer-To an operations department, the ability to yield output.
Cash flow statement - Correct answer-Record of how much cash is flowing into and out
of an organization, including its sources or destinations.
,Centralization - Correct answer-Degree to which decision-making authority is restricted
to higher levels of management in an organization.
Code of ethics - Correct answer-Principles of conduct within an organization that guide
decision making and behavior.
Consumer price index - Correct answer-Measure of the average change over time in the
prices paid by consumers for goods and services.
Control - Correct answer-To an operations department, an after-the-fact evaluation of a
company's ability to meet its own specifications and its customers' needs.
Correlation - Correct answer-Measure that indicates the relationship between two
variables.
Cost-benefit analysis - Correct answer-Ratio of value created to cost of creating that
value; allows management to determine the financial impact particular activities and
programs have on an organization's profitability.
Decentralization - Correct answer-Degree to which decision-making authority is given to
lower levels in an organization's hierarchy.
Departmentalization - Correct answer-Way an organization groups jobs to coordinate
work.
Divestiture - Correct answer-Sale by a company of an asset that is not performing well,
that is not core to the company's business, or that is worth more as a separate entity.
Divisional structure - Correct answer-Organizational structure in which segments ae
separated by product, customer or market, or region.
Due diligence - Correct answer-Process of conducting an intensive investigation of an
organization as one of the first steps in a pending merger or acquisition.
Electronic Communications Privacy Act (ECPA) - Correct answer-Act that makes it
unlawful to intercept messages in transmission, access stored information on electronic
communication services, or disclose this information.
Enterprise management - Correct answer-Integrated processes and tools to allow
information sharing and process management across functions, sometimes even with
external partners, such as suppliers.
, Environmental scanning - Correct answer-Process that involves a systematic survey
and interpretation of relevant data to identify external opportunities and threats.
Equity - Correct answer-Amount of owners' or shareholders' portion of a business.
Ethics - Correct answer-System of moral principles and values that
establish
appropriate
conduct.
Extended organization - Correct answer-Alliance between organizations to
create
processes and information channels that allow communication and
collaboration.
Financial ratios - Correct answer-Calculations designed to describe an organization's
financial health and performance from various perspectives.
Foreign Corrupt Practices Act (FCPA) - Correct answer-Prohibits American companies
from making corrupt payments to foreign officials for the purpose of obtaining or keeping
business.
Formula budgeting - Correct answer-Form of budgeting in which an average cost is
applied to comparable expenses and general funding is changed by a specific amount.
Functional structure - Correct answer-Organizational structure that defines departments
by what services they contribute to the organization's overall mission.
Gantt chart - Correct answer-Project planning tool that graphically displays activities of a
project in sequential order and plots them against time.
Generation X - Correct answer-Group of people born roughly between the years of 1965
- 1980
Generation Y - Correct answer-Group of people born after 1980.
Gross domestic product (GDP) - Correct answer-Estimate of the total value of goods
and services produced in a country in a given year.
Gross profit margin - Correct answer-Ratio of gross profit to net sales.
HR audit - Correct answer-Process to measure the effectiveness and efficiency of HR
Correct Verified Answers 2023/2024
Accounts Payable - Correct answer-Money an organization owes its vendors and
suppliers.
Accounts Receivable - Correct answer-Money an organization's customers owe the
organization.
Action Plans - Correct answer-Detailed steps a unit, department, or team will take in
order to achieve short-term objectives.
Amendment - Correct answer-Modification or the Constitution or a law; modification may
be either formal (written) or informal (unwritten).
Assets - Correct answer-Financial, physical, and sometiems intangible properties an
organization owns.
Balance Sheet - Correct answer-Statement of a firm's financial position at a particular
time.
Balanced scorecard - Correct answer-Measurement approach that provides an overall
picture of an organization's performance as measured against goals in finance,
customers, internal business processes, and learning and growth.
Bill - Correct answer-Proposal presented to a legislative body for possible enactment as
a law.
Break-even analysis - Correct answer-Analysis that shows point in time at which total
revenue associated with a program is equal to the total cost of the program.
Business Case - Correct answer-Description of an organizational challenge and
possible alternative solutions, arguing for specific solution.
Capacity - Correct answer-To an operations department, the ability to yield output.
Cash flow statement - Correct answer-Record of how much cash is flowing into and out
of an organization, including its sources or destinations.
,Centralization - Correct answer-Degree to which decision-making authority is restricted
to higher levels of management in an organization.
Code of ethics - Correct answer-Principles of conduct within an organization that guide
decision making and behavior.
Consumer price index - Correct answer-Measure of the average change over time in the
prices paid by consumers for goods and services.
Control - Correct answer-To an operations department, an after-the-fact evaluation of a
company's ability to meet its own specifications and its customers' needs.
Correlation - Correct answer-Measure that indicates the relationship between two
variables.
Cost-benefit analysis - Correct answer-Ratio of value created to cost of creating that
value; allows management to determine the financial impact particular activities and
programs have on an organization's profitability.
Decentralization - Correct answer-Degree to which decision-making authority is given to
lower levels in an organization's hierarchy.
Departmentalization - Correct answer-Way an organization groups jobs to coordinate
work.
Divestiture - Correct answer-Sale by a company of an asset that is not performing well,
that is not core to the company's business, or that is worth more as a separate entity.
Divisional structure - Correct answer-Organizational structure in which segments ae
separated by product, customer or market, or region.
Due diligence - Correct answer-Process of conducting an intensive investigation of an
organization as one of the first steps in a pending merger or acquisition.
Electronic Communications Privacy Act (ECPA) - Correct answer-Act that makes it
unlawful to intercept messages in transmission, access stored information on electronic
communication services, or disclose this information.
Enterprise management - Correct answer-Integrated processes and tools to allow
information sharing and process management across functions, sometimes even with
external partners, such as suppliers.
, Environmental scanning - Correct answer-Process that involves a systematic survey
and interpretation of relevant data to identify external opportunities and threats.
Equity - Correct answer-Amount of owners' or shareholders' portion of a business.
Ethics - Correct answer-System of moral principles and values that
establish
appropriate
conduct.
Extended organization - Correct answer-Alliance between organizations to
create
processes and information channels that allow communication and
collaboration.
Financial ratios - Correct answer-Calculations designed to describe an organization's
financial health and performance from various perspectives.
Foreign Corrupt Practices Act (FCPA) - Correct answer-Prohibits American companies
from making corrupt payments to foreign officials for the purpose of obtaining or keeping
business.
Formula budgeting - Correct answer-Form of budgeting in which an average cost is
applied to comparable expenses and general funding is changed by a specific amount.
Functional structure - Correct answer-Organizational structure that defines departments
by what services they contribute to the organization's overall mission.
Gantt chart - Correct answer-Project planning tool that graphically displays activities of a
project in sequential order and plots them against time.
Generation X - Correct answer-Group of people born roughly between the years of 1965
- 1980
Generation Y - Correct answer-Group of people born after 1980.
Gross domestic product (GDP) - Correct answer-Estimate of the total value of goods
and services produced in a country in a given year.
Gross profit margin - Correct answer-Ratio of gross profit to net sales.
HR audit - Correct answer-Process to measure the effectiveness and efficiency of HR
