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Certified Executive Compensation Professional Exam Questions and Answers

Questions 1

What is the most accurate statement regarding the effect of compensation plans on the organization?

Options:

A.

They typically have the greatest effect on net income and operating results of any organizational expense or program

B.

Their success or failure is closely tied to the success or failure of organizationwide goals and objectives

C.

They have very little effect as long as they are managed effectively and efficiently

D.

They affect the organization’s overall financial status and impact multiple stakeholders across most, if not all, business units

Questions 2

The XYZ Company focuses on maintaining/increasing market share and its products tend to be more evolutionary than revolutionary. What stage of the business lifecycle is XYZ most likely in?

Options:

A.

Start-up

B.

Growth

C.

Mature

D.

Decline

Questions 3

Which of the following is the earnings available to equity owners after paying debt and taxes?

Options:

A.

EBIT

B.

EPS

C.

Net income

D.

Operating profit

Next Question
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