Business Management Questions and Answers PDF

## Business Management Questions and Answers 1. **The business management tool that focuses on 4 key areas; financial results, customer results, internal business processes and learning and innovation is called?** - Six Sigma. - Balanced Scorecard. - Management by Objectives. - To...

## Business Management Questions and Answers 1. **The business management tool that focuses on 4 key areas; financial results, customer results, internal business processes and learning and innovation is called?** - Six Sigma. - Balanced Scorecard. - Management by Objectives. - Total Quality Management. **The answer is B. The balanced scorecard is the management tool that ties the outcomes of each department into one measurement system. It tracks information in 4 key areas as detailed in the question.** 2. **The Binc company is not certain on how to process three wage garnishment orders for Ned, an employee in the Sales department who receives 25% of his base pay in commission. How should the wage garnishment orders be processed?** - Fire Ned, the Consumer Credit Protection Act doesn't protect employees that have more than one wage garnishment order. - Process all of the court-ordered garnishments. - Process no more than 25% of Ned's total income. - Process no more than 25% of Ned's disposable income. **The answer is D. Wage garnishments are deductions made to satisfy a debt and should not exceed 25% of an employee's disposable income. Disposable income is an employee's pay after legally required deductions have been made. Firing Ned, though an option, doesn't answer the question.** 3. **Which of the following is not a statutory deduction?** - Medicare. - Income tax. - Wage Garnishment. - Employee Stock Purchase Plans (ESPP). **The answer is D. Employee Stock Purchase Plans are not legally required deductions. An employee stock purchase plan (ESPP) is a company-run program in which participating employees can purchase company stock at a discounted price.** 4. **In conducting a needs assessment for a payroll system in your organization, which of the following should be your first step?** - Identify organizational needs. - Compare various independent contractors and their rates. - Determine the payroll system of competitors. - None of the above. **The answer is A. The first step to a needs assessment is identify the needs and describe objectives clearly before reviewing existing and collecting new data.** 5. **Your Head of IT has received complaints from his team members with similar responsibilities who claim that there is a wide disparity in their respective base pay. As the HR Business Partner, which of the following is likely to be the issue?** - Distributive justice. - Procedural justice. - Lack of equity pay. - Lack of pay equity. **The answer is B. Procedural justice is the perception of how fair the process of arriving at pay ranges are perceived to be. Distributive justice indicates how closely pay reflects performance. Pay equity is the means of eliminating race and sex discrimination from pay or wages. Equity pay is a form of non-cash compensation that offers a form of ownership interest in a company.** 6. **The Dante company evaluates jobs by identifying and benchmarking job positions, with an emphasis on internal equity. This method of job evaluation is called?** - Factor-point method. - Classification Method. - Rating Method. - Ranking Method. **The answer is B. Jobs can be evaluated by two methods, the classification and ranking methods. The classification method evaluates jobs by identifying benchmark positions and determining internal equity. Internal equity means the value of a job relative to other jobs in the company.** 7. **With regards to affirmative action, comparison of incumbency to availability means?** - The availability of a particular protected group in the organization. - Protected class in job groups in relation to availability in labor pool. - Demographic data on the labor pool. - Modification of current employment practices. **The answer is B. One of the Affirmative Action Plan (AAP) components is comparison of incumbency to availability which compares protected classes employed in each job group with availability in the labor force within a reasonable recruiting area.** 8. **The ADEA and the FLSA require that payroll records be kept for how long?** - 3 years for exempt employees. - 4.5 years. - 2 years. - 3 years for all employees. **The answer is D. The Age Discrimination in Employment Act (ADEA) and the Fair Labor Standards Act (FLSA) require that payroll records be kept for 3 years for all employees.** 9. **Which of the following will help you determine if a measurement actually measures something that cannot be directly observed?** - Content validity. - Construct validity. - Concurrent validity. - Predictive validity. **The answer is B. Construct validity refers to the degree to which a test or other measure assesses the theoretical construct it is supposed to measure. Construct validity assesses whether a test measures the link between candidate characteristics and job performance. Content validity, on the other hand, measures the significant parts or contents of the job e.g. a practical driving test.** 10. **Sandra's employer refuses to offer her light duty during her pregnancy as the Pregnancy Discrimination Act (PDA) states that Sandra be treated as any other employee. Is this accurate?** - Yes, that is an exact statement from the PDA. - No, the PDA states pregnant employees be treated the same as any other employee with a short-term disability. - Yes, the PDA is not the same as the ADA. - None of the above. **The answer is B. The Pregnancy Discrimination Act of 1978 states that pregnant employees receive the same treatment as employees with any other short-term disability.** 11. **Which group has authority over unfair labor practices for federal employees?** - National Arbitration Board. - National Labor Relations Board. - Federal Labor Board. - Federal Labor Relations Authority. **The answer is D. The Federal Labor Relations Authority is an independent agency of the United States government that governs labor relations between the federal government and its employees.** 12. **Wayne, the CEO of your company is searching for a performance program that clearly indicates to employees that performance impacts rewards. What kind of compensation program is this?** - Internal equity compensation program. - Total-rewards compensation program. - Line of sight compensation program. - Entitlement compensation program. **The answer is C. Line of sight is a compensation program based on the premise where employees can clearly see that their performance impacts their pay.** 13. **For training that requires practical understanding of a realistic business situation, which of the following instructional methods is best?** - Virtual training. - Case study. - Conference. - Presentation. **The answer is B. Case studies are descriptions of a real-life experience which are used to conduct trainings and enhance the participants' understanding and learning experience.** 14. **Which of the following is not included in the OSHA general duty clause?** - Employers are to provide a place of employment free from recognized hazards. - Employers are to comply with occupational safety and health standards. - Employees are to comply with occupational safety and health standards. - Employees are required to take workplace violence prevention training. **The answer is D. The OSHA general duty clause does not include a requirement to take workplace violence prevention training.** 15. **Jean has been offered an executive role at a Software engineering firm. She is concerned though about the stock options offered her which will not vest until she has been with the company for 10 years, and agreements that state she must return certain bonuses if she leaves the company before 5 years. The benefits stated above are most likely?** - Executive pay trends. - Golden Parachutes. - Golden Handcuffs. - Qualified stock options. **The answer is C. Golden handcuffs are offered by employers as a means of holding onto key employees and increasing employee retention.** 16. **Which of the following organizations should employers contact for information about substances used in work processes to determine whether or not they are toxic?** - Equal Employment Opportunity Commission. - National Institute for Occupational Safety and Health. - Occupational Health and Safety Administration. - Department of Labor. **The answer is B. The National Institute for Occupational Safety and Health (NIOSH) is the federal agency responsible for conducting research and making recommendations for the prevention of work-related injury and illness.** 17. **Ted had his wages recently garnished for child support payments. Ted has a wife and children aside from the child for whom he is to pay child support. What is the maximum child support payments that can be garnished from Ted's wages?** - 25% of Ted's wages before legally mandated deductions. - 50% of Ted's wages after legally mandated deductions. - 60% of Ted's wages after legally mandated deductions. - 25% of Ted's wages after legally mandated deductions. **The answer is B. Child support (and alimony) garnishments can be up to 50% of disposable earnings if the employee is supporting a spouse or child. If the employee is not supporting a spouse or child, up to 60% of disposable earnings can be garnished. An additional 5 percent may be garnished for support payments that are more than 12 weeks in arrears. Disposable earnings are earnings after legally mandated deductions (Social Security, Medicare) have been made. Other debts can be garnished up to 25% of disposable earnings.** 18. **Restructuring is?** A radical readjustment of the organization's staffing and hierarchy.** 19. **A company should first choose a corporate-level strategy and then look at how changes will affect a company's current business model and strategies. True or False?** - True - False **The answer is False.** 20. **RESTRUCTURING AND REENGINEERING** - **Restructuring** - Streamlining hierarchy of and reducing number of levels of hierarchy. - Downsizing the workforce to lower operating costs. - **Reasons to Restructure and Downsize.** - Change in the business environment. - Excess capacity. - Bureaucratic costs: organization grew too tall and inflexible. - To improve competitive advantage and stay on top. - **Reengineering** - Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements. - Focuses on processes (which cut across functions), not on functions. 21. **Determining future needs is;** - Tactical - Strategic - Operational - Gap Analysis **The answer is B. A strategic plan is a vision of an organization's future and the basic steps required to achieve that future.** 22. **The difference between a company's mission statement and the concept of a strategic vision is that?** - The strategic vision portrays a company's future direction whereas a company's mission typically describes its present business and purpose. 23. **The most accurate definition of a strategy is?** - the general direction of a company towards which effort and actions are focused. - specific and measurable steps taken to achieve business goals. - an approach that deploys the strengths and opportunities of an organization to compete and gain a greater market share. - a tool used to achieve an objective associated with a strategy. **The answer is C. A strategy is the approach taken toward achieving a goal by utilizing its strengths and opportunities to its competitive advantage. Strategies define an organization's approach toward competing with other businesses in its field.**