Question 1

What is the most accurate statement regarding forecasting?

Options :

A : It is a precise estimate of what the future holds for the organization.

B : It is done primarily by using historical revenue and expense data.

C : It is done primarily by evaluating market conditions and economic indicators.

D : It uses internal and external factors to help answer questions about business expectations for the future.

Answer: D

Question 2

Which of the following acts is focused on employers with construction contracts with the government?

Options :

A : Davis-Bacon Act

B : National Labor Relations Act

C : McNamara-O'Hara Act

D : Sherman Antitrust Act

Answer: A

Question 3

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

Options :

A : General

B : Cost of living

C : Automatic

D : Merit

Answer: A

Question 4

Which one of the following should be included in a compensation guide for managers?

Options :

A : Information on common management processes

B : The consequences of various disciplinary measures

C : Individual salary rates of employees in their department

Answer: A

Question 5

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

Options :

A : They are all reported on the balance sheet.

B : They are all sources of capital.

C : They all incur the same costs to the business.

D : Nothing. Each of these is a different financial metric.

Answer: B