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Certified Executive Compensation Professional

Last Update 19 hours ago Total Questions : 100

The Certified Executive Compensation Professional content is now fully updated, with all current exam questions added 19 hours ago. Deciding to include CECP practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our CECP exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these CECP sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Certified Executive Compensation Professional practice test comfortably within the allotted time.

Question # 4

Which of the following is the most accurate statement about the business strategy?

A.

It usually is a secondary consideration in compensation design.

B.

It is the company's plan for competitive positioning of its products or services.

C.

It must be written after the company's operating plans are approved by senior management.

D.

It is developed for compensation, benefits and the work-life using the HR strategy as a basis.   

Question # 5

Administering budgets is an example of what key competency for compensation professionals?

A.

Financial Management

B.

HR Management

C.

Resource Management

D.

Policy Management

Question # 6

What type of equity incentive gives employees the right to purchase company shares at a specified price?

A.

Stock/share options

B.

Stock/share grants

C.

Restricted stock/shares

D.

Performance units   

Question # 7

Your company has had a strong fiscal year with a 15% increase in net income over the prior fiscal year. Share prices are at an all time high. Working with Finance, you have arrived at a 2.5% merit increase budget for the next fiscal year, a smaller increase than the last fiscal year. Finance has indicated that some large capital expenditures will be needed next year, so the company needs to conserve resources. Additionally, Legal is in final negotiations on a lawsuit that may be very costly to the company. Word of the smaller increases has line management concerned that they will lose their best performers. Given all of these factors, what is your best course of action?

A.

Implement the merit increase budget as is because the anticipated financial obligations have made it necessary

B.

Meet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases

C.

Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible

D.

Recommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount

Question # 8

The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility’s net operating profit after taxes was 10,500,000. What was the economic value added (EVA) using the EVA formula?

A.

500,000

B.

840,000

C.

8,000,000

D.

9,700,000

Question # 9

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

A.

It remains the same.

B.

It decreases because variable costs are increasing.

C.

It increases at the same rate as variable costs.

D.

It becomes increasingly higher as revenues increase.

Question # 10

Which financial statement or combination of statements provide(s) the most comprehensive view of the company’s financial situation?

A.

The balance sheet

B.

The income statement

C.

The cash flow statement and the income statement

D.

The cash flow statement, along with the balance sheet and income statement

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