Business Acumen for Compensation Professional: C8

What is the most accurate definition of organizational vision?

A. A description of who the organization is, where it is headed and what it wants for the future

B. A written explanation of the intention or purpose of the organization and why it is in business

C. A statement of what kind of organization it wants to be and the guiding principles and/or beliefs shared by stakeholders

D. A detailed account of the organization's goals, directions to achieve them and how it will compete

What do working capital metrics evaluate?

A. The change in working capital over a specific period of time, typically one year

B. A company's efficiency in converting short-term capital into cash

C. A company's mean capital expenditure per employee

D. The amount of cash needed to meet the company's short-term obligations

What best describes the most effective approach for facilitating fact-based decisions?

A. Ensuring support from all internal and external stakeholders

B. Estimating results based on historical data

C. Using statistical methods to predict outcomes

D. Determining, sourcing and collecting appropriate data