SHRM CP Exam: Business

Question 1

Profitability Rations

Answer 1

Analyze a business’s ability to generate earnings in comparison to expense costs

Question 2

Liquidity Rations

Answer 2

Measures a businesses’s available cash or ability to pay off short term debts

Question 3

Leverage or Capital Structure Ratios

Answer 3

Assess how the business uses debt to finance operations

Question 4

Strategic Alignment (Process)

Answer 4

Departmental objectives, departmental goals, action plan, collaborate, report and monitor results

Question 5

Balance Sheet

Answer 5

Assets - Liabilities = Equity

Question 6

Bottom Up vs Top Down Budgeting

Answer 6

Department supervisors forecast departmental expenses and payroll costs for the coming period vs expense and payroll estimation coming from the entire organization and then allocating amounts to department managers and holding them accountable to their funds

Question 7

Mckinsey 7-S Model

Answer 7

Strategy, Structure, systems, shared values, style, staff, skills

Question 8

Kotters 8-Step Change Model

Answer 8

1. Create urgency
2. Build a guiding coalition
3. Developing a shared vision and strategy
4. Communication the change vision
5. Empowering action
6. Generating short term wins
7. Consolidating gains and driving change
   8 Integrate new approaches in the culture

Question 9

Lewins Change Management Model

Answer 9

Unfreezing, Change, Refreezing

Question 10

Action Research Model/Building A Case For Change

Answer 10

1. Data Gathering
2. Feedback of data to a target group
3. Data Discussions
4. Action Planning
5. Action
6. Recycling

Question 11

Gene Dalton’s Theory of Lasting Changer

Answer 11

1. Generalized goal-specific objectives
2. Former social ties-new relationships
3. Self Doubt - heightened self esteem
4. External motives for change - internal motive for change

Question 12

Descriptive Statistics

Answer 12

measure central tendency, dispersion variability, frequency distribution, and proportions.

Question 13

Correlation Coefficient

Answer 13

Strength of a relationship reflected as a range from -1.0 to 0 for negative correlations and 0 to 1.0 for positive correlations. The numbers closer to 0 are weaker where as 1.0 and -1.0 are strong

Question 14

Correlation Coefficient

Answer 14

Strength of a relationship reflected as a range from -1.0 to 0 for negative correlations and 0 to 1.0 for positive correlations. The numbers closer to 0 are weaker where as 1.0 and -1.0 are strong

Question 15

Regression Analysis

Answer 15

Estimates or predicts the unknown values of one variable from the known or fixed value of another variable.

Question 16

Reliability vs Validity

Answer 16

Reliable if it produces consistent and repeatable measures every time. Valid refers to whether and instrument accurately measures what it is supposed to be measuring

Question 17

Solomon Four Group Design

Answer 17

Four groups of randomly assigned participants. Two groups are pretested and then on present and one non pretest receive training before all four groups are observed and post tested