SMPS CPSM Domain 6: Key Terms
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Accounts Receivable Collections - CORRECT ANSWER - The process of collecting
payment from clients for services provided, measured in the average number of days it takes to
collect.
Amount (Column) - CORRECT ANSWER - A three-part column in the pipeline report
representing an estimate of the fee for a potential project, recorded based on the stage of the sale
(idea, made contact, or proposal).
Arbitration - CORRECT ANSWER - The use of a neutral third party to settle a dispute
between two parties.
Baby Boomers - CORRECT ANSWER - The generation born between the mid-1940s and
early 1960s.
Backlog - CORRECT ANSWER - The work or revenue that has been logged but has not
yet been completed.
Business Development (BD) - CORRECT ANSWER - 1. Gathering client and pursuit
knowledge before a request for proposals. 2. Activities performed to win projects with a
customer or prospect.
Business Unit/Niche (Column) - CORRECT ANSWER - A column in the pipeline report
documenting the industry niche or business unit associated with potential new work.
Charge-Out Rate - CORRECT ANSWER - The rate at which a firm collects payment from
clients for services provided.
, Chief Information Officer (CIO) - CORRECT ANSWER - Senior member bridging the
information systems department and the company's top management.
Client/Prospect (Column) - CORRECT ANSWER - A column in the pipeline report
documenting whether a sale was to a repeat client or prospective client.
Consequential Damages - CORRECT ANSWER - Damages not directly caused by one
party's breach of a contract, but which may result from the breach.
Consideration - CORRECT ANSWER - The value exchanged between parties in a
contract, which can consist of promises, services, goods, and/or money.
Contract - CORRECT ANSWER - 1. A mutually binding legal relationship obligating the
seller to furnish supplies or services and the buyer to pay for them. 2. An exchange of promises
between parties creating a legal obligation.
Cross-Functional Training - CORRECT ANSWER - Training ensuring staff from each
functional area understand the needs and opportunities presented by their teammates in other
departments.
Cross-Selling - CORRECT ANSWER - Selling a different service offered by your firm to
an existing client.
Current Ratio - CORRECT ANSWER - The ratio of a firm's current assets to its current
liabilities.
Curve of Relationships© - CORRECT ANSWER - A model defining the relationship-
building process with five levels of connection and three phases of evolution.
Customer Relationship Management (CRM) - CORRECT ANSWER - A process mediated
by information technologies focusing on creating two-way exchanges with customers to
understand their needs and buying patterns.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Accounts Receivable Collections - CORRECT ANSWER - The process of collecting
payment from clients for services provided, measured in the average number of days it takes to
collect.
Amount (Column) - CORRECT ANSWER - A three-part column in the pipeline report
representing an estimate of the fee for a potential project, recorded based on the stage of the sale
(idea, made contact, or proposal).
Arbitration - CORRECT ANSWER - The use of a neutral third party to settle a dispute
between two parties.
Baby Boomers - CORRECT ANSWER - The generation born between the mid-1940s and
early 1960s.
Backlog - CORRECT ANSWER - The work or revenue that has been logged but has not
yet been completed.
Business Development (BD) - CORRECT ANSWER - 1. Gathering client and pursuit
knowledge before a request for proposals. 2. Activities performed to win projects with a
customer or prospect.
Business Unit/Niche (Column) - CORRECT ANSWER - A column in the pipeline report
documenting the industry niche or business unit associated with potential new work.
Charge-Out Rate - CORRECT ANSWER - The rate at which a firm collects payment from
clients for services provided.
, Chief Information Officer (CIO) - CORRECT ANSWER - Senior member bridging the
information systems department and the company's top management.
Client/Prospect (Column) - CORRECT ANSWER - A column in the pipeline report
documenting whether a sale was to a repeat client or prospective client.
Consequential Damages - CORRECT ANSWER - Damages not directly caused by one
party's breach of a contract, but which may result from the breach.
Consideration - CORRECT ANSWER - The value exchanged between parties in a
contract, which can consist of promises, services, goods, and/or money.
Contract - CORRECT ANSWER - 1. A mutually binding legal relationship obligating the
seller to furnish supplies or services and the buyer to pay for them. 2. An exchange of promises
between parties creating a legal obligation.
Cross-Functional Training - CORRECT ANSWER - Training ensuring staff from each
functional area understand the needs and opportunities presented by their teammates in other
departments.
Cross-Selling - CORRECT ANSWER - Selling a different service offered by your firm to
an existing client.
Current Ratio - CORRECT ANSWER - The ratio of a firm's current assets to its current
liabilities.
Curve of Relationships© - CORRECT ANSWER - A model defining the relationship-
building process with five levels of connection and three phases of evolution.
Customer Relationship Management (CRM) - CORRECT ANSWER - A process mediated
by information technologies focusing on creating two-way exchanges with customers to
understand their needs and buying patterns.
