Verified Multiple Choice and Conceptual Actual
100% Correct Detailed Answers
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1. The CEO is primarily responsible for:
A. Choosing the next board chair
B. Initiating succession planning ✔
C. Conducting performance reviews
D. Approving all HR hiring decisions
2. Organizations with formal succession plans are:
A. Less likely to transition smoothly
B. More likely to have smoother leadership transitions ✔
C. Required by law to promote internally
D. Unable to hire external candidates
3. The board of directors is responsible for:
A. Recommending training programs
B. Hiring middle managers
C. Appointing a successor ✔
D. Conducting exit interviews
4. Which factors motivate succession planning?
,A. CEO with previous succession experience ✔
B. Lack of interest in leadership development
C. Internal coordinator initiating the process ✔
D. Recognition of benefits to the organization ✔
5. Succession planning should ideally begin:
A. After the CEO submits their resignation
B. Two months before leadership transition
C. Four years before CEO departure ✔
D. Only after identifying internal candidates
6. HR's role in succession planning includes:
A. Choosing the new CEO
B. Managing the succession planning process ✔
C. Overseeing board elections
D. Setting CEO compensation
7. Succession planning saves organizations money by:
A. Eliminating unnecessary training
B. Reducing executive search fees ✔
C. Maintaining leadership continuity ✔
D. Avoiding performance evaluations
8. Grooming an internal candidate is considered:
A. A risky and uncommon practice
B. A legal requirement
, C. A key element of for-profit succession planning ✔
D. A method used only in small companies
9. Hiring an external CEO often results in:
A. Immediate financial improvement
B. Financial performance recovering over 6–12 months ✔
C. Guaranteed organizational restructuring
D. No significant financial difference
10. Which are principles of effective succession planning?
A. Board-driven, collaborative process ✔
B. One-time annual activity
C. Continuity: successor always ready ✔
D. Post-succession assessment ✔
E. Randomized selection process
F. Defined leadership criteria with feedback loops ✔
11. Succession planning must be:
A. Conducted once every decade
B. A continuous process ✔
C. Completed only when a CEO retires
D. Delegated entirely to external consultants
12. Feedback loops are important because they:
A. Allow secrecy in the process
B. Ensure the successor receives necessary developmental experiences ✔