QUESTIONS AND ANSWERS
UPGRADED 2025/2026
The process by which the key stakeholders of an organization envision its future and develop a mission,
objectives, and procedures to achieve that future is called:
A. Goal planning
B. Future planning
C. Succession planning
D. Strategic planning - CORRECT ANSWERS -☑ D. The definition of strategic planning is indeed the
process by which key stakeholders of an organization envision its future and develop a mission,
objectives, and procedures to achieve that future.
☐✗ A, B, and C are incorrect. A is incorrect because establishing goals is a result of the larger planning
process. B is incorrect because although it is true that the larger planning process may require looking
into the future, that is only part of the process. Although succession planning is an action that may result
from the larger planning process,
C is incorrect because succession planning is not the term describing the overall planning process.
The process of analyzing and identifying the need and availability of labor resources so
that the organization can meet its objectives is called:
A. Human resource planning
B. Recruitment requisition
C. Objective planning
D. Training needs assessment - CORRECT ANSWERS -☑ A. Human resource planning involves analyzing
and identifying the organization's labor pool needs. From there human resources forms its strategy in
recruiting and retaining labor skills necessary for the organization to achieve its objectives.
,☐✗ B, C, and D are incorrect. B is incorrect because a recruitment requisition is only
part of the process. It is a process or form that hiring managers and recruiters use to communicate with
one another about an open position need. C is incorrect because while it's true the intention of this
process is to reach objectives, this is not the correct term used. D is incorrect because a training needs
assessment is used to identify an organization's workforce skill needs.
A unique capability or advantage that differentiates the organization from its competitors
is called:
A. Research and development
B. Core competency
C. Providing cheaper products
D. Hiring talent faster - CORRECT ANSWERS -☑ B. An organization's core competency is a capability that
distinguishes it from its competitors. It is the capability that an organization does exceptionally and
uniquely well.
☐✗ A, C, and D are incorrect. A is incorrect because research and development is a function within an
organization that is responsible for creating new products and services and is not necessarily a core
competency of an organization. C is not the best answer because creating cheaper products does not
necessarily make an organization competitive. Plus, it is not the product itself that creates a core
competency but rather what an organization does collectively very well that makes it rise above
competition. D is incorrect because while quickly hiring talent is important, it is really the type of talent
that may contribute to the organization's core competency and enable it to be competitive.
A statement that describes what the future of the organization looks like is known as:
A. Purpose statement
B. Vision statement
C. Financial statement
,D. Benefit statement - CORRECT ANSWERS -☑ B. A vision statement describes what the future of an
organization looks like in concise terms.
☐✗ A, C, and D are incorrect. A is incorrect because a purpose statement is a sentence that
summarizes the topic or goals of a particular document. C is incorrect because a financial statement is a
collection of reports that describes an organization's financial activity such as a balance sheet, cash flow
statement, or income statement. D is incorrect because a benefit statement, also called a total
compensation statement, provides employees with a true picture of what they earn above and beyond
their base pay.
A description of how an organization will achieve its vision is called:
A. Job description
B. Purpose statement
C. Mission statement
D. Summary plan description - CORRECT ANSWERS -☑ C. A mission statement describes how an
organization is going to achieve its vision.
☐✗ A, B, and D are incorrect. A is incorrect because a job description describes a job's responsibilities
and qualifications that are required for success. B is incorrect because
a purpose statement is a sentence that summarizes the topic or goals of a particular document. D is
incorrect because a summary plan description communicates a health or retirement plan's eligibility
requirements, obligations, and specific benefits available for employees and their dependents.
A statement that communicates the organization's top priorities and core beliefs to
customers and employees is called:
A. Code of conduct
B. Employee handbook
, C. Purpose statement
D. Values statement - CORRECT ANSWERS -☑ D. The values statement communicates to customers and
employees what the organization's priorities are. An effective values statement is embraced by
leadership and provides guidance in key decision-making requirements.
☐✗ A, B, and C are incorrect. They all represent different internal operational documents that may
exist in an organization that do not necessarily communicate with the customer as to what are the
overall priorities.
The statement "We aspire to be the best widget maker in America" is an example of a:
A. Vision statement
B. Financial statement
C. Mission statement
D. Values statement - CORRECT ANSWERS -☑ A. The statement "We aspire to be the best widget maker
in America" is an example of a vision statement. A vision statement describes the ideal future state of an
organization.
☐✗ B, C, and D are incorrect. B is incorrect because a financial statement describes an organization's
financial activity, C is incorrect because a mission statement describes how an organization intends to
accomplish the vision, and D is incorrect because a values statement describes the priorities of an
organization.
A SWOT analysis used for planning identifies an organization's:
A. Statements, workplace, operations, and technology
B. Safety, workforce, organization, and terms
C. Strengths, weaknesses, opportunities, and threats