CECP Sample Questions Answers

Its ability to generate profits is unknown.

It is in the worst market position and has insufficient resources to continue operations.

It is unclear how to best utilize the high cash flow to sustain growth.

Its excess resources are often used to develop other businesses that may not be mission-critical.

March 1st

March 31st

April 5th

April 8th

The ability to display confidence and decisiveness that will inspire others and make you a better leader

A greater likelihood of promotion, especially when you are competing with individuals with more experience

Increased marketability, which will lead to qualification for opportunities outside of human resources

It is critical to your career development and a deficiency is very likely to hinder career advancement and success.

Production worker

Account executive

IT contractor

HR Director

Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

Fixed costs and variable costs are equally important and both should be kept to a minimum.

Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

In the methods and processes used to make pay decisions

In the details of their individual compensation packages

In the overall program objectives

In the differences in pay levels for the different levels of the organization

By using cash from other segments of the business

By using its high credit rating from prior years to receive a line of credit until the strategy begins to work

By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even

By identifying and duplicating the strategy used by its main competitor.

The compensation committee’s interpretation of how employees can best meet business objectives

Guidelines that determine the administration of compensation programs

Statement of what the organization believes about how people should be paid

Principles that guide the design of compensation programs

Earnings

Shares

Market capitalization

Increased market value and reinvested dividends paid

A Star

A Question Mark

A Market Leader

A Cash Cow

The current value of holdings

The current value of holdings and how much it will grow over time at a given rate of return

The desired value in the future and what needs to be invested today to realize that amount

The difference between the desired value in the future and the current value as a percentage of the desired value

Revenue minus cost of goods sold

Expenses plus taxes and depreciation

Gross profit minus expenses

Cost of goods sold