SHRM EXAM PREP UPDATED ACTUAL Questions and CORRECT Answers
1. Service-level Document that defines the output customers can expect.
agreement
2. Value chain The process by which an organization creates the product or service it otters to
the customer.
3. Accounts Money an organization owes its vendors and suppliers.
payable
4. Value The benefit created when an organization meets its strategic goals; measure of
usefulness, worth, or importance.
5. Business intelli- Ability to use information to gain a deeper understanding of an organization and
gence make sound business decisions.
6. Balance sheet Statement of an organization's financial position at a specific point in time, show-
ing assets, liabilities, and shareholder equity.
7. Enterprise re- Business management software, usually a suite of integrated applications, that a
source planning company can use to collect, store, manage, and interpret data from many business
(ERP) activities.
8. Liabilities Organization's debts and other financial obligations.
9. Accounts receiv- Money an organization's customers owe the organization.
able
10. Equity Amount of owners' or shareholders' portion of a business.
11. Cash flow state- Statement of an organization's ability to meet its current and short-term oblig-
ment ations, showing incoming and outgoing cash and cash reserves in operations,
investments, and financing.
12. Ratio of gross profit to net sales.
, Gross profit mar-
gin
13. Balanced score- Performance management tool that depicts an organization's overall perfor-
card mance, as measured against goals, lagging indicators, and leading indicators.
14. Analytical pro- Applications that can analyze data faster and in more ways than traditional rela-
cessing tional databases, ottering a multidimensional analysis of business data.
15. Net profit margin Ratio of net income (gross sales minus expenses and taxes) to net sales.
16. Business case Presentation to management that establishes that a specific problem exists and
argues for a proposed solution.
17. Assets Financial, physical, and sometimes intangible properties an organization owns.
18. Income state- Statement that reports revenues, expenses, and profits for a specified period of
ment time, for example, quarterly or annually.
19. Transformation- Leadership theory that emphasizes a leader's ability to inspire employees to
al leadership embrace change; leaders encourage and motivate employees to innovate and
seek out changes that can add value and growth to the organization.
20. Affiliative leader- Leadership approach in which the leader creates strong relationships with and
ship approach inside the team; team members are motivated by loyalty.
21. Expert power Power that is created when a leader is recognized as possessing great intelligence,
insight, or experience.
22. Servant leader- Leadership theory in which the leaders' goal is to serve the needs of their
ship employees; emphasizes the sharing of power.
23. Referent power Power that is created by the force of the leader's personality.
24.
1. Service-level Document that defines the output customers can expect.
agreement
2. Value chain The process by which an organization creates the product or service it otters to
the customer.
3. Accounts Money an organization owes its vendors and suppliers.
payable
4. Value The benefit created when an organization meets its strategic goals; measure of
usefulness, worth, or importance.
5. Business intelli- Ability to use information to gain a deeper understanding of an organization and
gence make sound business decisions.
6. Balance sheet Statement of an organization's financial position at a specific point in time, show-
ing assets, liabilities, and shareholder equity.
7. Enterprise re- Business management software, usually a suite of integrated applications, that a
source planning company can use to collect, store, manage, and interpret data from many business
(ERP) activities.
8. Liabilities Organization's debts and other financial obligations.
9. Accounts receiv- Money an organization's customers owe the organization.
able
10. Equity Amount of owners' or shareholders' portion of a business.
11. Cash flow state- Statement of an organization's ability to meet its current and short-term oblig-
ment ations, showing incoming and outgoing cash and cash reserves in operations,
investments, and financing.
12. Ratio of gross profit to net sales.
, Gross profit mar-
gin
13. Balanced score- Performance management tool that depicts an organization's overall perfor-
card mance, as measured against goals, lagging indicators, and leading indicators.
14. Analytical pro- Applications that can analyze data faster and in more ways than traditional rela-
cessing tional databases, ottering a multidimensional analysis of business data.
15. Net profit margin Ratio of net income (gross sales minus expenses and taxes) to net sales.
16. Business case Presentation to management that establishes that a specific problem exists and
argues for a proposed solution.
17. Assets Financial, physical, and sometimes intangible properties an organization owns.
18. Income state- Statement that reports revenues, expenses, and profits for a specified period of
ment time, for example, quarterly or annually.
19. Transformation- Leadership theory that emphasizes a leader's ability to inspire employees to
al leadership embrace change; leaders encourage and motivate employees to innovate and
seek out changes that can add value and growth to the organization.
20. Affiliative leader- Leadership approach in which the leader creates strong relationships with and
ship approach inside the team; team members are motivated by loyalty.
21. Expert power Power that is created when a leader is recognized as possessing great intelligence,
insight, or experience.
22. Servant leader- Leadership theory in which the leaders' goal is to serve the needs of their
ship employees; emphasizes the sharing of power.
23. Referent power Power that is created by the force of the leader's personality.
24.
