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Certified Executive Compensation Professional Questions and Answers

Question 9

What do profits, equity and debt all have in common?

They are all reported on the balance sheet.

They are all sources of capital.

They all incur the same costs to the business.

Nothing. Each of these is a different financial metric.

Question 10

Understanding basic organization design principles is an example of what key competency for compensation professionals?

Financial Management

HR Management

Resource Management

Policy Management

Question 11

Which of the following is a true statement regarding the talent development needs of employees?

If employees believe their skills will fall behind their professional peers, they will be afraid to look for another job.

Obtaining and developing skills provides leverage for the employee to seek more compensation.

Opportunities for career advancement are important to employees in their decisions to either join or leave an organization.

Question 12

What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?

General

Cost of living

Automatic

Merit