EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
PHR Certification Exam Study Guide
with Complete Solutions
Accounts Payable - Answer✔✔-Money an organization owes its vendors and suppliers.
Accounts Receivable - Answer✔✔-Money an organization's customers owe the organization.
Action Plans - Answer✔✔-Detailed steps a unit, department, or team will take in order to
achieve short-term objectives.
Amendment - Answer✔✔-Modification or the Constitution or a law; modification may be either
formal (written) or informal (unwritten).
Assets - Answer✔✔-Financial, physical, and sometiems intangible properties an organization
owns.
Balance Sheet - Answer✔✔-Statement of a firm's financial position at a particular time.
Balanced scorecard - 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 - Answer✔✔-Proposal presented to a legislative body for possible enactment as a law.
Page 1/43
,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Break-even analysis - 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 - Answer✔✔-Description of an organizational challenge and possible alternative
solutions, arguing for specific solution.
Capacity - Answer✔✔-To an operations department, the ability to yield output.
Cash flow statement - Answer✔✔-Record of how much cash is flowing into and out of an
organization, including its sources or destinations.
Centralization - Answer✔✔-Degree to which decision-making authority is restricted to higher
levels of management in an organization.
Code of ethics - Answer✔✔-Principles of conduct within an organization that guide decision
making and behavior.
Consumer price index - Answer✔✔-Measure of the average change over time in the prices paid
by consumers for goods and services.
Control - 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 - Answer✔✔-Measure that indicates the relationship between two variables.
Cost-benefit analysis - 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.
Page 2/43
,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Decentralization - Answer✔✔-Degree to which decision-making authority is given to lower
levels in an organization's hierarchy.
Departmentalization - Answer✔✔-Way an organization groups jobs to coordinate work.
Divestiture - 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 - Answer✔✔-Organizational structure in which segments ae separated by
product, customer or market, or region.
Due diligence - 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) - Answer✔✔-Act that makes it unlawful to
intercept messages in transmission, access stored information on electronic communication
services, or disclose this information.
Enterprise management - Answer✔✔-Integrated processes and tools to allow information
sharing and process management across functions, sometimes even with external partners,
such as suppliers.
Environmental scanning - Answer✔✔-Process that involves a systematic survey and
interpretation of relevant data to identify external opportunities and threats.
Equity - Answer✔✔-Amount of owners' or shareholders' portion of a business.
Ethics - Answer✔✔-System of moral principles and values that establish appropriate conduct.
Page 3/43
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Extended organization - Answer✔✔-Alliance between organizations to create processes and
information channels that allow communication and collaboration.
Financial ratios - Answer✔✔-Calculations designed to describe an organization's financial health
and performance from various perspectives.
Foreign Corrupt Practices Act (FCPA) - Answer✔✔-Prohibits American companies from making
corrupt payments to foreign officials for the purpose of obtaining or keeping business.
Formula budgeting - 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 - Answer✔✔-Organizational structure that defines departments by what
services they contribute to the organization's overall mission.
Gantt chart - Answer✔✔-Project planning tool that graphically displays activities of a project in
sequential order and plots them against time.
Generation X - Answer✔✔-Group of people born roughly between the years of 1965 - 1980
Generation Y - Answer✔✔-Group of people born after 1980.
Gross domestic product (GDP) - Answer✔✔-Estimate of the total value of goods and services
produced in a country in a given year.
Gross profit margin - Answer✔✔-Ratio of gross profit to net sales.
Page 4/43
PHR Certification Exam Study Guide
with Complete Solutions
Accounts Payable - Answer✔✔-Money an organization owes its vendors and suppliers.
Accounts Receivable - Answer✔✔-Money an organization's customers owe the organization.
Action Plans - Answer✔✔-Detailed steps a unit, department, or team will take in order to
achieve short-term objectives.
Amendment - Answer✔✔-Modification or the Constitution or a law; modification may be either
formal (written) or informal (unwritten).
Assets - Answer✔✔-Financial, physical, and sometiems intangible properties an organization
owns.
Balance Sheet - Answer✔✔-Statement of a firm's financial position at a particular time.
Balanced scorecard - 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 - Answer✔✔-Proposal presented to a legislative body for possible enactment as a law.
Page 1/43
,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Break-even analysis - 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 - Answer✔✔-Description of an organizational challenge and possible alternative
solutions, arguing for specific solution.
Capacity - Answer✔✔-To an operations department, the ability to yield output.
Cash flow statement - Answer✔✔-Record of how much cash is flowing into and out of an
organization, including its sources or destinations.
Centralization - Answer✔✔-Degree to which decision-making authority is restricted to higher
levels of management in an organization.
Code of ethics - Answer✔✔-Principles of conduct within an organization that guide decision
making and behavior.
Consumer price index - Answer✔✔-Measure of the average change over time in the prices paid
by consumers for goods and services.
Control - 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 - Answer✔✔-Measure that indicates the relationship between two variables.
Cost-benefit analysis - 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.
Page 2/43
,EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Decentralization - Answer✔✔-Degree to which decision-making authority is given to lower
levels in an organization's hierarchy.
Departmentalization - Answer✔✔-Way an organization groups jobs to coordinate work.
Divestiture - 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 - Answer✔✔-Organizational structure in which segments ae separated by
product, customer or market, or region.
Due diligence - 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) - Answer✔✔-Act that makes it unlawful to
intercept messages in transmission, access stored information on electronic communication
services, or disclose this information.
Enterprise management - Answer✔✔-Integrated processes and tools to allow information
sharing and process management across functions, sometimes even with external partners,
such as suppliers.
Environmental scanning - Answer✔✔-Process that involves a systematic survey and
interpretation of relevant data to identify external opportunities and threats.
Equity - Answer✔✔-Amount of owners' or shareholders' portion of a business.
Ethics - Answer✔✔-System of moral principles and values that establish appropriate conduct.
Page 3/43
, EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024
Extended organization - Answer✔✔-Alliance between organizations to create processes and
information channels that allow communication and collaboration.
Financial ratios - Answer✔✔-Calculations designed to describe an organization's financial health
and performance from various perspectives.
Foreign Corrupt Practices Act (FCPA) - Answer✔✔-Prohibits American companies from making
corrupt payments to foreign officials for the purpose of obtaining or keeping business.
Formula budgeting - 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 - Answer✔✔-Organizational structure that defines departments by what
services they contribute to the organization's overall mission.
Gantt chart - Answer✔✔-Project planning tool that graphically displays activities of a project in
sequential order and plots them against time.
Generation X - Answer✔✔-Group of people born roughly between the years of 1965 - 1980
Generation Y - Answer✔✔-Group of people born after 1980.
Gross domestic product (GDP) - Answer✔✔-Estimate of the total value of goods and services
produced in a country in a given year.
Gross profit margin - Answer✔✔-Ratio of gross profit to net sales.
Page 4/43
