Training and Development

Question 1

If a painter is commissioned by a business to complete a work to go in the training room of their building, the copyright is owned by:
A. The business
B. Equal ownership over the copyright
C. The painter

Answer 1

A. The business

Question 2

A copyright lasts for the life of the author, plus __ years.
A. 73
B. 75
C. 70
D. 68

Answer 2

C. 70

Question 3

Allows the use of copyrighted works under certain conditions:
A. Work-made-for-hire
B. Copyright act
C. “Acceptable conditions” exclusion
D. “Fair use” provision

Answer 3

D. “Fair use” provision

Question 4

The ______ brought employment practices under the jurisdiction of the courts.
A. Civil Rights Act of 1875
B. Civil Rights Act of 1968
C. Bill of Rights
D. Civil Rights Act of 1964

Answer 4

D. Civil Rights Act of 1964

Question 5

Title VII prohibits discrimination in employment practices on the basis of:
A. Race, color, national origin, religion, sex, and disability.
B. Race, color, national origin, age, and sex
C. Race, color, national origin, religion, and sex
D. Race, color, national origin, sex, and disability

Answer 5

C. Race, color, national origin, religion, and sex

Question 6

The Age Discrimination in Employment Act (ADEA) of 1967 prohibits discrimination in employment against persons age:
A. 50 and over
B. 55 and over
C. 40 and over
D. 60 and over

Answer 6

C. 40 and over

Question 7

Why do some global companies hire people to fill a position that they are not qualified for?
A. Global companies struggle to find and keep good talent. Hiring unqualified candidates creates a need for training that will improve the employees’ capabilities.
B. Simply because there is a short supply of qualified employees for global companies, whereas there are many qualified employees for domestic companies.
C. The market is more competitive at a global level; therefore, companies hire underqualified candidates they see potential in with the hopes they will one day meet the company’s expectations.
D. Global employees are usually more expensive, so global companies tend to hire underqualified candidates they can get for a more affordable price.

Answer 7

A. Global companies struggle to find and keep good talent. Hiring unqualified candidates creates a need for training that will improve the employees’ capabilities.

Question 8

Believing that how things are done in the US is the best, or the only, way is an example of:
A. Multiculturalism
B. Ethnocentrism
C. Xenocentrism
D. Cultural relativism

Answer 8

B. Ethnocentrism

Question 9

Which of the following is an example of a critical implication of globalization for the management of human resources:
A. Terrorism, safety, and security
B. Offshoring
C. Employee development
D. All are examples

Answer 9

D. All are examples

Question 10

Hofstede’s categories about the major differences between country cultures are:
A. Power distance, linguistic barrier, individualism/collectivism, and masculinity/femininity
B. Power distance, uncertainty avoidance, individualism/collectivism, and masculinity/femininity
C. Power distance, linguistic barrier, cultural variance, and individualism/collectivism.
D. Uncertainty avoidance, individualism/collectivism, masculinity/femininity, and cultural variance

Answer 10

B. Power distance, uncertainty avoidance, individualism/collectivism, and masculinity/femininity.

Question 11

One of the top reasons employees stay with an organization:
A. Find their work rewarding
B. Opportunities for career growth
C. Take pride in their company and their product
D. Pay and benefits

Answer 11

B. Opportunities for career growth

Question 12

The term “employment security” means:
A. The guarantee of being able to be employed whether with an existing company or another
B. Employee skills will be kept current so that if they are fired, their job skills will be marketable
C. The same thing as job security
D. The likelihood that an employee will be able to keep their employment for a long time

Answer 12

B. Employee skills will be kept current so that if they are fired, their job skills will be marketable

Question 13

The four competency stages are:
A. Acquiring, applying, mastering, and influencing
B. Acquiring, applying, commanding, and influencing
C. Developing, implementing, mastering, and persuading
D. Acquiring, implementing, ruling, and persuading.

Answer 13

A. Acquiring, applying, mastering, and influencing

Question 14

Under what competency stage is an HR professional who represents the organization to individuals, groups and institutions, inside and outside the organization?
A. Mastering
B. Acquiring
C. Applying
D. Influencing

Answer 14

D. Influencing

Question 15

What role do top performing leaders play in an organization’s training and development programs?
A. Top performing leaders are usually the ones who conduct the training
B. An organization’s top performers determine what needs to be taught
C. The traits that make them top performers are usually what training is designed around
D. All of the above

Answer 15

C. The traits that make them top performers are usually what training is designed around.

Question 16

Line managers are the best source of _____
I. Technical information about job requirements
II. Information about which employees need training
III. Information on how to train each type of employee
A. I and II
B. II
C. I
D. I, II, and III

Answer 16

A. I and II

Question 17

What is the role of a “CLO” or a “CKO”?
A. Conduct training and development programs that are specifically designed for top management positions in the company, like the CEO, CFO, COO, etc.
B. Develop training and development processes that align with the organizations long-term needs
C. Conduct post-training evaluations to determine what training programs have either worked effectively or not
D. Training director in charge of all training and development within an organization

Answer 17

B. Develop training and development processes that align with the organizations long-term needs.

Question 18

Training adds value to a company when it links __ to ___.
A. Department goals; organizational goals
B. HR management; training and learning goals
C. HR management; line management
D. Training and learning goals; organizational goals

Answer 18

D. Training and learning goals; organizational goals

Question 19

All of the following reasons explain why a needs analysis is not conducted EXCEPT:
A. Consume time and resources
B. Training fads and demands from senior management sometime dominate
C. Isn’t always necessary to conduct effective training
D. Difficult to summarize findings into objective data

Answer 19

C. Isn’t always necessary to conduct effective training.

Question 20

True/False
If the skills needed for a job are adequate, expectations for job performance are clear, and motivation is present, there should be no reason for training.

Answer 20

False

Question 21

The type of training program that is designed for future concerns:
A. Developmental training
B. Future training
C. Gap training
D. Precautionary training

Answer 21

A. Developmental training

Question 22

Most training programs are designed to address:
A. Current problems in performance
B. Solutions for future issues that may occur
C. Past problems that have occurred.
D. All of the above

Answer 22

A. Current problems in performance

Question 23

A common reason many training programs don’t produce results is because:
A. Trainers are more interested in conducting the program itself than in first assessing the needs of their organization and the workers.
B. Trainers do not properly perform a needs assessment which prevents them from conducting the most needed training for that organization.
C. After conducting a needs assessment, trainers then fail to design the training program the way it needs to be in order to address the needs found in the assessment.
D. All of the above.

Answer 23

A. Trainers are more interested in conducting the program itself than in first assessing the needs of their organization and the workers.

Question 24

It is important to consider the support of _____ for training programs.
A. Employees
B. Management
C. Peers of potential trainees.
D. All of the above

Answer 24

D. All of the above

Question 25

True/False
If peers’ attitudes and behaviors are not supportive of training in general or of a specific training program in particular, employees are not likely to take their participation in such programs seriously.

Answer 25

True

Question 26

When it comes to training programs, when employees do not ____, there is no ____, which means there is no impact for the training program on organizational effectiveness.
A. Learn; transfer
B. Attend; training
C. Benefit; change
D. Participate; learning

Answer 26

A. Learn; transfer

Question 27

Each of the following is a method of needs assessment EXCEPT:
A. Online technology
B. Benchmarking
C. Focus groups
D. Questionnaires

Answer 27

B. Benchmarking

Question 28

What is the best method of needs assessment?
A. Focus groups
B. Observation
C. Online technology
D. None of the above

Answer 28

D. None of the above

Question 29

The more ____ the scope of needs assessment is, the more valid it is going to be.
A. Broad
B. In depth
C. Narrow
D. Focused

Answer 29

A. Broad

Question 30

When benchmarking, you try to identify ____ of another organization.
A. Common business strategies
B. Best practices
C. Areas for improvement
D. All of the above

Answer 30

B. Best practices

Question 31

Once the preliminary list of tasks is developed and confirmed, the next step in the task analysis process is to:
A. Develop a portion of the training that focuses on each task
B. Create another list that ranks the tasks from most crucial to least
C. Determine the importance, frequency, and difficulty of each task
D. Develop a list of KSAO’s needed for each task.

Answer 31

C. Determine the importance, frequency, and difficulty of each task.

Question 32

All of the following are methods used to determine the KSAO’s for a particular task EXCEPT
A. Questionnaire
B. Observation
C. Interviewing supervisors
D. Interviewing job incumbents

Answer 32

B. Observation

Question 33

Since KSAO’s may not be directly observable, we must see them as
A. Hypotheses
B. Objective
C. Biased
D. Subjective

Answer 33

A. Hypotheses

Question 34

In order to develop a top-notch training program, you first must
A. Understand how people learn
B. Conduct a needs assessment
C. Have a need for improvement
D. Conduct an organization analysis

Answer 34

A. Understand how people learn

Question 35

Human behavior is rooted in habit and
A. Tradition
B. Perceptions
C. Expected outcomes
D. Prior experience

Answer 35

D. Prior experience

Question 36

Only ___ percent of organizations (with more than 1,000 employees) use needs assessment before using a training program.
A. 27
B. 11
C. 6
D. 17

Answer 36

A. 27

Question 37

True/False
If an employee has the requisite skills and knowledge to accomplish their work, but management fails to make performance expectations clear through goal setting or some other means, these performance deficiencies can be corrected through training.

Answer 37

False

Question 38

Needs assessment deals with which step in the ADDIE model?
A. 2
B. 1
C. 5
D. 3

Answer 38

B. 1

Question 39

Since the learning objectives should contain a standard of performance against which to measure performance, learning objectives should be:
A. Specific and realistic
B. Measurable and attainable
C. Realistic and attainable
D. Specific and measurable

Answer 39

D. Specific and measurable

Question 40

Since the training should stretch the attendees, but still be reasonable, the learning objective should be:
A. Attainable and realistic
B. Specific and attainable
C. Attainable and measurable
D. Realistic and timely

Answer 40

A. Attainable and realistic

Question 41

SMART is used to:
A. Write good goal statements
B. Develop training exercises
C. Establish the training agenda
D. All of the above

Answer 41

A. Write good goal statements

Question 42

When training begins with simple tasks that can be mastered easily, then progress to more complex learning as trainees gain confidence, it is an example of what kind of learning concept?
A. Reinforcement
B. Self-efficacy
C. Transfer
D. Retention

Answer 42

B. Self-efficacy

Question 43

Behavior that is reinforced tends to be:
A. Accelerated
B. Inadequate
C. Remembered
D. Repeated

Answer 43

D. Repeated

Question 44

According to the learning concept “shaping behavior,” if a certain task needs to be learned:
A. It must be reinforced by positive behavior
B. It can be broken into small component behaviors
C. Only certain behavior can be used to learn that task
D. All of the above

Answer 44

B. It can be broken into small component behaviors

Question 45

True/False
It is necessary to experience rewards and punishments yourself to learn new behaviors

Answer 45

False

Question 46

The more ____ the material, the more readily it is retained.
A. Developed
B. Meaningful
C. Understandable
D. Applicable

Answer 46

B. Meaningful

Question 47

Transfer of learned material back to the job happens when the training conditions are ____ to those at the work site.
A. Easier
B. Harder
C. Similar
D. Identical

Answer 47

D. Identical

Question 48

Is good at decisiveness, practical application of ideas, and hypothetical deductive reasoning:
A. Accommodator
B. Converger
C. Diverger
D. Assimilator

Answer 48

B. Converger

Question 49

Which of the following are the dominant learning approaches of a diverger:
I. Abstract conceptualization
II. Concrete experience
III. Reflective observation
IV. Active experimentation

A. III and IV
B. II and IV
C. I and III
D. II and III

Answer 49

D. II and III

Question 50

Accommodator:
A. Is good at implementing decisions, carrying out plans, and getting involved in new experiences
B. Tends to be less concerned with people than with ideas and abstract concepts
C. Prefers dealing with technical tasks rather than interpersonal issues
D. Tends to be interested in people, culture, and arts

Answer 50

A. Is good at implementing decisions, carrying out plans, and getting involved in new experiences.

Question 51

An Assimilator:
A. Tends to be at ease with people but may be seen as impatient or pushy
B. Is good at generating ideas, seeing a situation from multiple perspectives, and being aware of meaning and value
C. Is good at decisiveness, practical application of ideas, and hypothetical deductive reasoning.
D. None of the above

Answer 51

D. None of the above

Question 52

Unlike the dependency of children, adults have formed a self-concept and a psychological need to be self-directing, therefore the role of the teacher is to:
A. Coach the trainees along the process of learning
B. Provide real-world experiences for the trainees to gain hands-on experience
C. Teach by example, then have the trainees demonstrate
D. Participate with the learner in a process of mutual inquiry.

Answer 52

D. Participate with the learner in a process of mutual inquiry.

Question 53

A type of learning that involves understanding the big picture first, and then introducing smaller pieces to fit together is known as:
A. Puzzle learning
B. Structured learning
C. Overlearning
D. Whole learning

Answer 53

D. Whole learning

Question 54

True/False
Motivation is frequently influenced by the physical space in which the training takes place.

Answer 54

True

Question 55

The core design of any training program is to:
A. Accomplish organizational goals
B. Alter work behavior
C. Improve current results
D. Develop better performing employees

Answer 55

B. Alter work behavior

Question 56

The key question to ask in the design of a training program is:
A. What should the trainee be able to do upon completion of the program?
B. How is this training going to increase revenue?
C. What employee behaviors do we want to alter?
D. What is the application of this training?

Answer 56

A. What should the trainee be able to do upon completion of the program?

Question 57

All of the following are principles for the design of training for adult learners EXCEPT:
A. Need to be self-directed in their learning
B. Need to know the “why”
C. Training needs to be behaviorally based, focused on ways of “Gestalt” learning
D. Enter the training with a problem-centered approach to learning and seek immediate application.

Answer 57

C. Training needs to be behaviorally based, focused on ways of “Gestalt” learning

Question 58

_____ research is very useful in thinking about training program design.
A. Pedagogical
B. Gestalt
C. Developmental
D. Behavioral

Answer 58

A. Pedagogical

Question 59

What type of training might be useful for young management?
A. Mentoring
B. Job rotation
C. Apprenticeships
D. Systematic observation

Answer 59

B. Job rotation

Question 60

What training is most effective for learning complex sets of rules or procedures?
A. Correspondence courses
B. Computer-assisted instruction
C. Web-based instruction
D. Programmed instruction

Answer 60

D. Programmed instruction

Question 61

What is one problem with on-the-job training?
A. Require additional space, and equipment
B. Expensive
C. Little quality control
D. Least productive training

Answer 61

C. Little quality control

Question 62

One main advantage to simulation and structured exercises is:
A. It is more cost efficient compared to other training methods
B. Provides the most “real world” experience a trainee can get
C. The trainer has full control over the development of the trainee
D. Trainees can make mistakes without the negative repercussion

Answer 62

D. Trainees can make mistakes without the negative repercussion

Question 63

At what group size should group discussions have a structured mechanism to assure everyone participates?
A. Over 7
B. Under 5
C. About 6
D. At least 9

Answer 63

C. About 6

Question 64

Tell, show, demonstrate, and ask questions are all part of which step in the on-the-job process?
A. Perform follow-up
B. Present the information
C. Prepare the learners
D. Have trainee practice

Answer 64

B. Present the information

Question 65

“Off the shelf” programs from external training organizations particularly benefit:
A. Those who are looking for “proved” methods of training
B. Organizations that need a large number of employees trained in a short period of time
C. Organizations that don’t have the resources to put together their own training program
D. Smaller businesses that don’t have enough employees where tailored training is needed as much as a bigger organization would need.

Answer 65

B. Organizations that need a large number of employees trained in a short period of time

Question 66

What is a part of the on-the-job process step “prepare the learners”?
A. Get them interested in the learning
B. Put trainees on their own for a while
C. Ask questions
D. Make sure they know each point

Answer 66

A. Get them interested in learning

Question 67

True/False
Knowing the material well and being a subject matter expert makes someone a good trainer.

Answer 67

False

Question 68

True/False
Outdoor management training requires the visible and active support of top management to be successful.

Answer 68

True

Question 69

Culture buy-in trainings primary purpose is:
A. To communicate to the employees that the company is going to be involved with another company from a different culture and help them understand the changes and differences they might see.
B. To communicate to participants that the organization is undergoing a fundamental and radical change in corporate culture.
C. To help participants adapt to current or future changes that might be happening to the culture of the company.
D. To educate current employees on the diversity of the different cultures amongst the employees.

Answer 69

B. To communicate to participants that the organization is undergoing a fundamental and radical change in corporate culture.

Question 70

Although practical, on-the-job training has very little___
A. Willing participants
B. Quality control
C. Success
D. Noticeable results

Answer 70

B. Quality control

Question 71

Action learning appeals to the ___
A. Visual learner
B. Auditory learner
C. Kinesthetic learner
D. Extreme learner

Answer 71

C. Kinesthetic learner

Question 72

E-learning disadvantages include:
I. Inflexible scheduling
II. Expensive if large amounts of people are involved
III. High dropout rates
IV. Security concerns.

A. I, II, III, and IV
B. I and III
C. I, II, and III
D. III and IV

Answer 72

D. III and IV

Question 73

Which step in the training process includes mastery evaluation?
A. Present the information
B. Perform follow-up
C. Prepare the learners
D. Have trainee practice

Answer 73

D. Have trainee practice

Question 74

If you want your trainer to get more familiar with training, a ____ program might be necessary.
A. Train the trainer
B. Subject matter expert
C. Pilot
D. Controlled environment

Answer 74

A. Train the trainer

Question 75

In the 1970’s, training and development had a ____ role, and it wasn’t until the 2010’s it had a ____ role.
A. Passive; partner
B. Partner; pioneer
C. Pioneer; protagonist
D. Passive; protagonist

Answer 75

D. Passive; protagonist

Question 76

After you have done all of the initial steps and then considered the different ways of maximizing a trainee’s learning, you then must _____.
A. Perform a needs assessment
B. Select the trainees
C. Develop a plan for what is expected to come from the training
D. Determine the specific training method

Answer 76

D. Determine the specific trianing method

Question 77

Programmed instruction, web-based instruction, and teleconference are all forms of:
A. Simulation
B. Information presentation
C. On-the-job training
D. All of the above

Answer 77

B. Information presentation

Question 78

If a training program emphasizes that general principles might be applied to a greater set of contexts than those presented in the training, ____ transfer is likely to occur.
A. Negative
B. Far
C. Near
D. Positive

Answer 78

B. Far

Question 79

What are the two types of positive transfer?
I. Successful
II. Near
III. Implemented
IV. Far

A. II and IV
B. I and II
C. III and IV
D. II and III

Answer 79

A. II and IV

Question 80

If after a two day training trainees’ return to their work and after a while no apparent change has occurred, a _____ transfer occurred.
A. Positive
B. Faulty
C. Negative
D. Zero

Answer 80

D. Zero

Question 81

If a company generally has low organizational commitment and high cynicism about change, what is the best strategy to take for training?
A. Identify outliers in the organization to first participate in the training
B. Select those who have the most impact on others in the company to take the training first.
C. The best strategy would be to fix the problem before developing any training programs.
D. First develop a training about organizational commitment and organizational change.

Answer 81

A. identify outliers in the organization to first participate in the training.

Question 82

Pre-training motivation to learn is most affected by:
I. Reputation of the training
II. Meaningful pre-work
III. Inherent intrinsic satisfaction from learning
IV. Organizational commitment

A. I, II, and III
B. II and III
C. II, III, and IV
D. I, III, and IV

Answer 82

D. I, III, and IV

Question 83

The “theory of identical elements” is that:
A. Learning occurs best when what is being taught in training is being taught in the exact same environment to where the trainees must perform their job.
B. Learning occurs best when what is being taught in training is identical to what the trainee must perform on the job.
C. Transfer occurs best when what is being learned in training is identical to what the trainee must perform on the job.
D. Transfer occurs best when what is being learned in training is being taught in the exact same environment to where the trainee must perform their job.

Answer 83

C. Transfer occurs best when what is being learned in training is identical to what the trainee must perform on the job.

Question 84

The learning environment has complete ____ with the work environment.
A. Fealty
B. Consistency
C. Fidelity
D. Correspondence

Answer 84

C. Fidelity

Question 85

If the training revolves around factual learning, it is a good idea to precede the introduction with:
A. Questions
B. Facts
C. An example
D. Case studies

Answer 85

A. Questions

Question 86

When are adult learners most receptive to training programs?
A. When they believe that the training will apply to their work
B. When there is less information being taught and more skills being developed
C. When the training has been proved to be beneficial
D. When the applicability to their lives is direct and obvious.

Answer 86

D. When the applicability to their lives is direct and obvious.

Question 87

True/False
Negative transfer is facilitated when trainees feel the trainer doesn’t fully understand their situations and job challenges and how they feel about their work. This is most likely to happen when the trainer is from inside the organization.

Answer 87

False

Question 88

Activity level indicates:
A. How many of the trained skills trainees get to use on the job.
B. The amount of application trained skills have on the job.
C. The level of challenge represented in the application of learnings on the job.
D. The number of repetitions trainees get back on the job

Answer 88

D. The number of repetitions trainees get back on the job.

Question 89

The level of challenge represented in the application of learning on the job is called:
A. Breadth
B. Activity level
C. EPSS
D. Task type

Answer 89

D. Task type

Question 90

What two things must trainees do for effective transfer?
A. Practice and overcome
B. Apply and maintain
C. Reinforce and practice
D. Repeat and apply

Answer 90

B. Apply and maintain

Question 91

True/False
In order to maintain effective transfer, “relapse prevention” training was formed, which was modeled after the approaches used in the rehabilitation of those with drug and alcohol addictions.

Answer 91

True

Question 92

Transfer of training means:
A. Effectively and continually applying what they learned in training back on the job.
B. Effectively applying what they learned in training to their personal life.
C. Being able to train other employees on what has been learned.
D. Being able to learn from different kinds of training.

Answer 92

A. Effectively and continually applying what they learned in training back on the job.

Question 93

Transfer deals with which part(s) of the ADDIE model?
I. Assessment
II. Design
III. Development
IV. Implementation
V. Evaluation

A. I, II, and IV
B. I and II
C. I and V
D. II

Answer 93

B. I and II

Question 94

If a training program encourages trainees to focus only on important differences between training tasks and work tasks, it is trying to accomplish _____.
A. Self-efficacy
B. Near transfer
C. Self-regulation
D. Positive transfer

Answer 94

B. Near transfer

Question 95

According to the model of training transfer, what is directly related to training transfer?
I. Training design
II. Work environment
III. Trainee characteristics

A. I and III
B. I, II, and III
C. III
D. II and III

Answer 95

D. II and III

Question 96

Traits, abilities and motivation are sub-groups of ____.
A. Training design
B. Work environment
C. Trainee characteristics
D. Learning retention

Answer 96

C. Trainee characteristics

Question 97

True/False
If the goal is near transfer, practice should take place in a variety of different places, and if the goal is far transfer, practice should take place in a setting that is similar to the trainees’ work environment.

Answer 97

False.

Question 98

Which criteria is the most important, but also the most difficult to measure?
A. Results
B. Behavior
C. Reaction
D. Learning

Answer 98

A. Results

Question 99

What is the most common type of evaluation measure?
A. Reaction
B. Results
C. Learning
D. Behavior

Answer 99

A. Reaction

Question 100

Levels of learning are often identified as:
A. Comprehension, application, analysis, synthesis, and evaluation
B. Knowledge, comprehension, application, analysis, synthesis, and evaluation
C. Comprehension, implementation, determination, synthesis, and results.
D. Knowledge, understanding, implementation, analysis, synthesis, and results.

Answer 100

B. Knowledge, comprehension, application, analysis, synthesis, and evaluation.

Question 101

Reaction and learning measures are called _____ evaluation.
A. Synthesis
B. Analysis
C. Application
D. Internal

Answer 101

D. Internal

Question 102

True/False
The four training evaluation criteria are all considered independent from each other.

Answer 102

False

Question 103

What is the weakness of quasi-experimental designs?
A. Difficult to draw conclusion from
B. Provide poor control
C. Control group is not included
D. Not randomly assigned trainees

Answer 103

D. Not randomly assigned trainees

Question 104

The time series design is ____ than pre-experimental designs.
A. More difficult
B. Better
C. Less impactful
D. Longer

Answer 104

B. Better

Question 105

Randomization:
A. Eliminates unnecessary bias
B. Creates a more even trainee class
C. Eliminates most of the threats to the validity of conclusions
D. All of the above

Answer 105

C. Eliminates most of the threats to the validity of conclusions

Question 106

True/False
Randomization eliminates the need for pretests

Answer 106

True

Question 107

In many situations, the best experimental design is:
A. Time series
B. Posttest only control group
C. Pretest-posttest control group
D. Nonequivalent control group

Answer 107

B. Posttest only control group

Question 108

Nonequivalent control group and time series are examples of what experimental design?
A. Quasi-experimental
B. Experimental
C. Pre-experimental
D. Pretest-posttest

Answer 108

A. Quasi-experimental

Question 109

Single group posttest only is an example of what experimental design?
A. Pre-experimental
B. Experimental
C. Nonequivalent
D. Quasi-experimental

Answer 109

A. Pre-experimental

Question 110

Organizations that select trainees based off of scheduling or based off of the specific individuals who they want to go through training will most likely need to use what kind of experimental design?
A. Experimental
B. Quasi-experimental
C. Pre-experimental
D. All of the above

Answer 110

B. Quasi-experimental

Question 111

Which of the following is an example of an experimental design?
A. Posttest only control group with random assignment
B. Single group pretest-posttest
C. Nonequivalent control group
D. Time series

Answer 111

A. Posttest only control group with random assignment

Question 112

In the IPCO case, reaction measures were taken ____.
A. Two months later
B. Immediately after
C. Three years later
D. All of the above

Answer 112

D. All of the above

Question 113

When using self-assessments with regards to behavior change, always:
A. Be skeptical about what is being reported
B. Get a confirmation about the assessment from the supervisor
C. Ask them to provide examples
D. Assume they are biased

Answer 113

A. Be skeptical about what is being reported

Question 114

Which of the following successes can solely be attributed to the IPCO training?
A. Sick leave usage declined after training
B. Total Quality Management improved
C. IPCO was awarded the DoD Center of Excellence award
D. None of the above

Answer 114

D. None of the above

Question 115

_______ involves the systematic collection of data and information necessary to make effective decisions related to the selection, adoption, value, and modification of training activities.
A. Training design
B. Trainee selection
C. Evaluation
D. Needs assessment

Answer 115

C. Evaluation

Question 116

Which level of evaluation attempts to measure changes in behavior back on the job?
A. Level 2
B. Level 1
C. Level 3
D. Level 4

Answer 116

C. Level 3

Question 117

Self-serving bias is:
A. When a trainee overstates how much they have transferred their learning
B. When a trainee tries to make themselves look better
C. A type of bias trainers have in the selection of trainees
D. Trainers training biased material to make themselves look better

Answer 117

A. When a trainee overstates how much they have transferred their learning.

Question 118

What is the main task of the training evaluation?
A. Determine how effectively the trainees learned and transferred their newly learned behaviors, knowledge, skills, or attitudes
B. Evaluate the level of work trainees are doing compared to the work they were doing before the training took place.
C. Determine if a change took place and demonstrate that the changes were caused by the training program.
D. All of the above

Answer 118

C. Determine if a change took place and demonstrate that the changes were caused by the training program.

Question 119

Only about ____ in 40 companies make an attempt to evaluate their training programs.
A. 15
B. 10
C. 1
D. 5

Answer 119

C. 1

Question 120

True/False
Evaluation should follow the most rigorous experimental design possible.

Answer 120

True

Question 121

Evaluation should be planned at the same time as the training program and should be closely tied to the ____ objectives established for the program.
A. Behavioral
B. Transfer
C. Business
D. Skills

Answer 121

A. Behavioral

Question 122

When conducting an evaluation it is best to use ____ type(s) of criteria.
A. 1
B. 2
C. 4
D. None of the above

Answer 122

D. None of the above

Question 123

There are generally four categories of criteria to use when evaluating training programs, two _____ and two ______.
A. Internal; external
B. Developmental; environmental
C. Behavioral; environmental
D. Behavioral; cognitive

Answer 123

A. Internal; external

Question 124

The four categories of criteria used for evaluation are:
A. Behavior, support, transfer, and results
B. Motivation, support, knowledge, and behavior
C. Transfer, self-efficacy, support, and environment
D. Reaction, learning, behavior, and results.

Answer 124

D. Reaction, learning, behavior, and results.

Question 125

Asking the question, “What did the participants think and feel about the training program?” is an example of ____ criteria.
A. Reaction
B. Behavior
C. Results
D. Learning

Answer 125

A. Reaction

Question 126

Paper and pencil test, role plays, and work samples can all be used for what criteria in training evaluation?
A. Reaction
B. Results
C. Learning
D. Behavior

Answer 126

C. Learning

Question 127

Peers, subordinates, customers, and others in addition to the direct supervisor can be canvassed to determine ____ criteria.
A. Results
B. Learning
C. Reaction
D. Behavior

Answer 127

D. Behavior

Question 128

What is the challenge with using criteria for determining a measurement of change?
A. Knowing the validity of measurement
B. Determining whether or not the change came from the training or another source
C. Determining which measurement to use.
D. All of the above

Answer 128

B. Determining whether or not the change came from the training or another source.

Question 129

The principles of experimental design allow the training evaluation to be conducted in such a way as to help rule out ____ explanations for any observed improvements in learning.
A. Similar
B. Opposing
C. Alternative
D. Random

Answer 129

C. Alternative

Question 130

What is a mistake most organizations make with their training programs?
I. Send participants through a training program with no pretest
II. Send participants through a training program that are not in need of training
III. Send participants through a training program with no comparison group against to measure progression.

A. I, II, and III
B. I and III
C. III
D. II and III

Answer 130

B. I and III

Question 131

True/False
It is impossible to draw any conclusions about the effects of training unless organizations send a selected group of participants through a training program with a pretest and with a comparison group against which to measure progress on the criteria.

Answer 131

True

Question 132

____ designs provide better control than ____ designs.
A. Quasi-experimental; pre-experimental
B. Pre-experimental; quasi-experimental
C. Single-group posttest; multi-group posttest
D. Multi-group posttest; single-group posttest

Answer 132

A. Quasi-experimental; pre-experimental

Question 133

What was the purpose of the training IPCO did in the 1990’s?
A. Communicate the new vision for the company
B. Create commitment for the new vision
C. Build the organization into a high-performing team
D. All of the above

Answer 133

D. All of the above

Question 134

The triangular partnership was used:
A. To encourage team commitment and unity
B. As a buddy system so no individual was left alone while performing a task
C. To illustrate the importance of communication and feedback in performing a difficult task
D. In a group of three where there would constantly be one who was placed in charge and took responsibility for the group.

Answer 134

C. To illustrate the importance of communication and feedback in performing a difficult task.

Question 135

According to the training evaluation model for IPCO:
A. Reactions directly influence results
B. Attitudes directly influence reults
C. Supportive organizational climate directly influence results
D. Behaviors directly influence results

Answer 135

D. Behaviors directly influence results

Question 136

Reaction does not affect:
A. Knowledge and skills
B. Intentions
C. Supportive organizational climate
D. Attitudes

Answer 136

C. Supportive organizational climate

Question 137

What experimental design did IPCO use?
A. Quasi-experimental
B. Pre-experimental
C. Experimental
D. None of the above

Answer 137

C. Experimental

Question 138

Career management is:
A. The planning of movement of all careers within an organization
B. Facilitation of a growth inductive environment for employees of an organization
C. Planning, implementing, and monitoring employee career paths
D. Managing an individuals growth within a company

Answer 138

C. Planning, implementing, and monitoring employee career paths.

Question 139

What is the difference between career management and career planning?
A. Career planning is done between the employee and the supervisor
B. Career management deals with the growth within the organization
C. There is no difference between the two
D. Career planning is the responsibility of the individual

Answer 139

D. Career planning is the responsibility of the individual

Question 140

_____ achieves both personal career goals and organizational goals.
A. Career development
B. Career planning
C. Career management
D. Career outlook

Answer 140

A. Career development

Question 141

Communicating development preferences to management and identifying personal abilities and interests is part of:
A. Career development
B. Career planning
C. Career management
D. None of the above

Answer 141

B. Career planning

Question 142

Matching organizational needs with individual capabilities and identifying future organizational staffing needs is part of:
A. Career development
B. Career management
C. Career planning
D. None of the above

Answer 142

B. Career management

Question 143

Proposed an eight-stage life cycle model:
A. B. F. Skinner
B. William James
C. Erik Erikson
D. Sigmund Freud

Answer 143

C. Erik Erikson

Question 144

This stage begins in the late teenage years and is a time of searching for values and role models.
A. Trust
B. Industry
C. Ego integrity
D. Identity

Answer 144

D. Identity

Question 145

During the “identity” stage it is common to:
A. Find a new sense of purpose in life
B. Decide on a career path
C. Think about a variety of different career choices
D. Find personal ego identities

Answer 145

C. Think about a variety of different career choices

Question 146

Intimacy and involvement are a part of what stage?
A. Adolescence
B. Middle childhood
C. Middle age
D. Young adulthood

Answer 146

D. Young adulthood

Question 147

Generativity:
A. Developing something of value for other people
B. Developing a personal identity
C. Part of Erikson’s sixth stage
D. Occupies the least amount of time in a person’s life.

Answer 147

A. Developing something of value for other people.

Question 148

Typical stages in career development include all of the following except:
A. Organizational entry
B. Occupational preparation
C. Retirement
D. Mid-career

Answer 148

C. Retirement

Question 149

True/False
Individuals can cycle through all five career stages several times in their lives.

Answer 149

True

Question 150

Which of the following is a major task of mid-career?
A. Increase competence
B. Remain productive in work
C. Pursue career dream
D. Maintain self esteem

Answer 150

B. Remain productive in work

Question 151

Which of the following is not a major task of early career establishment and achievement?
A. Develop occupational self-image
B. Learn organizational norms
C. Fit into chosen occupation and organization
D. Learn the job

Answer 151

A. Develop occupational self image

Question 152

People choose their career field based on a variety of factors:
I. Fields that intrinsically motivate them
II. Capabilities and talents
III. Personality
IV. Socioeconomic status

A. I, II, III, and IV
B. II, III, and IV
C. I and II
D. I, II and III

Answer 152

A. I, II, III, and IV

Question 153

The job interview establishes ____ for the new employees and their first job supervisor.
A. A psychological contract
B. Responsibilites
C. A relationship
D. Expectations

Answer 153

D. Expectations

Question 154

Realistic job preview is used to:
A. Establish a relationship between the supervisor and interviewee
B. Get unspoken job expectations out in the open
C. Discuss all the job expectations
D. Give the interviewee a realistic experience of what it’s like to have a certain job.

Answer 154

B. Get unspoken job expectations out in the open.

Question 155

True/False
RJPs reduce acceptance rates for job offers, however, they also reduce early job turnover.

Answer 155

False

Question 156

Another alternative to RJPs is _____
A. Question and answer interview
B. Job shadowing
C. Psychological contracting
D. Open interviewing

Answer 156

C. Psychological contracting

Question 157

What is the most common type of training?
A. Orientation
B. Supervisor
C. Motivational
D. Skills development

Answer 157

A. Orientation

Question 158

Employees in the early career stage are likely dealing with issues of ___ and ___.
A. Self-image; occupational choice
B. Self-esteem; accomplishment
C. Identity; acceptance
D. Intimacy; involvement

Answer 158

D. Intimacy; involvement

Question 159

Employees in the early career stage have a strong need for ____.
A. Guidance
B. Feedback
C. Supervision
D. Acceptance

Answer 159

B. Feedback

Question 160

The more ____ a new hire’s job is (in the early career stage) job is, the more successful they will be in the future.
A. Engaging
B. Manageable
C. Challenging
D. Meaningful

Answer 160

C. Challenging

Question 161

It is essential that a new hire’s manager be good at ____ and ____.
A. Training new hires; counseling
B. Establishing a relationship; coaching new hires
C. Coaching; establishing trust
D. Conducting performance reviews; establishing development plans

Answer 161

D. Conducting performance reviews; establishing development plans

Question 162

What is true about performance appraisals?
A. They allow the employee to achieve their career objectives
B. They help satisfy organizational requirements
C. Performance appraisals are rarely done right
D. All of the above

Answer 162

D. All of the above

Question 163

Employees begin questioning if they are on the right track at what career stage?
A. Early-career
B. Mid-career
C. Late-career
D. At all stages

Answer 163

B. Mid-career

Question 164

Mid-life crisis often leads to:
A. Life and career changes
B. Re-examination of life and career goals
C. A feeling of immobility and depression
D. Irrational decisions

Answer 164

B. Re-examination of life and career goals

Question 165

How can organizations make the best of the “re-examination” period of an employee’s life?
A. Help the employee get re-committed and re-invigorated
B. Get the employee to take on different or more challenging work
C. Search for different opportunities within the organization that might better fit the needs of the individual
D. Help them realize that their current career was the right choice all along.

Answer 165

A. Help the employee get re-committed and re-invigorated

Question 166

A big difference between Erik Erikson’s model and Hudson’s model is that Erikson’s is _____ while Hudson’s is ____.
A. Linear; cyclical
B. Hierarchal; egalitarian
C. Scientific; theoretical
D. Psychological; behavioral

Answer 166

A. Linear; cyclical

Question 167

What is the basic logic of the renewal cycle?
A. We will never feel fully satisfied about our career choice?
B. Everyone at some point in time will feel negative about their career choice
C. In order to get to the point of being totally happy with ones career choice, they first must experience doubt about their decision
D. Life is full of either mini-transitions or life-transitions

Answer 167

B. Everyone at some point in time will feel negative about their career choice.

Question 168

What is considered the “normal” retirement age?
A. Early 70s
B. Early 60s
C. Mid 60s
D. Late 50s

Answer 168

C. Mid 60s

Question 169

True/False
Most training provided by organizations is focused on younger employees

Answer 169

True

Question 170

An approach organizations use to combat the retirement of baby boomers and the shortage of skilled workers is:
I. Keep workers fully trained and employed for as long as possible
II. Have employees go from full-time to part-time and then eventually to retirement
III. Hire retired employees on a contract basis

A. II
B. I and III
C. I, II, and III
D. II and III

Answer 170

C. I, II, and III

Question 171

Which of the following is not an issue faced by those who retire?
A. Sense of purpose
B. Pride in achievement
C. Need to belong
D. Territoriality

Answer 171

A. Sense of purpose

Question 172

Self management is:
A. Adjustment to having no direction or goals
B. Adjustment to being totally self directed
C. Adjustment to loss of status
D. Adjustment to having no work group to interact with.

Answer 172

B. Adjustment to being totally self directed

Question 173

Need to belong is:
A. Adjustment to having no work group to interact with
B. Adjustment to being totally self directed
C. Adjustment to loss of status
D. Adjustment to having no direction or goals

Answer 173

A. Adjustment to having no work group to interact with

Question 174

Pride in achievement is:
A. Adjustment to being totally self directed
B. Adjustment to having no direction or goals
C. Recognition that pride in work accomplishments will fade quickly, and so will self-esteem
D. Adjustment to loss of status

Answer 174

C. Recognition that pride in work accomplishments will fade quickly, and so will self-esteem

Question 175

Territoriality is:
A. Adjustment to having no direction for goals
B. Adjustment to being totally self-directed
C. Adjustment to having no work group to interact with.
D. Adjustment to loss of status

Answer 175

D. Adjustment to loss of status

Question 176

Goals is:
A. Adjustment to having no work group to interact with.
B. Adjustment to loss of status
C. Adjustment to being totally self directed
D. Adjustment to having no direction for goals

Answer 176

D. Adjustment to having no direction for goals

Question 177

Developing a career plan that accommodates the organizations needs and initiate career development programs:
A. Career development
B. Career planning
C. Career management
D. None of the above

Answer 177

A. Career development

Question 178

Which of the following is an example of career management?
A. Plan personal career goals
B. Focus on individual
C. Focus on the organization
D. Assess career path options

Answer 178

C. Focus on the organization

Question 179

What is the opposite of generativity?
A. Dormancy
B. Stagnation
C. Inaction
D. Quiescence

Answer 179

B. Stagnation

Question 180

During the stage of “maturity,” you acquire _____.
A. Initiative
B. Generativity
C. Industry
D. Ego integrity

Answer 180

D. Ego integrity

Question 181

Organizations experience a higher amount of turnover during what stage?
A. Seventh
B. Eighth
C. Sixth
D. Fifth

Answer 181

C. Sixth

Question 182

Obtain job offers from desired organizations is at what stage of career development?
A. Mid-career
B. Occupational preparation
C. Organizational entry
D. Early-career

Answer 182

C. Organizational entry

Question 183

Develop a broader view of work and organization is at what stage of career development?
A. Organizational entry
B. Mid-career
C. Late-career
D. Early-career

Answer 183

B. Mid-career

Question 184

Which of the following are not organizational-level information new employees need to know?
A. Safety and accident prevention
B. Employee and union relations
C. Specific job duties and responsibilities
D. Key policies and procedures

Answer 184

C. Specific job duties and responsibilites

Question 185

Which of the following are not department level information new employees need to know?
A. Performance expectations
B. Department role
C. Customer relations
D. Policies, procedures, rules, and regulations

Answer 185

C. Customer relations

Question 186

Why is it bad for organizations to have orientation training consisting of “talking heads”, or of several people talking about particular information?
A. Not as interactive
B. Employee is a passive recipient
C. Few opportunities to ask questions
D. All of the above

Answer 186

D. All of the above

Question 187

When employees face the decision to make a mini-transition or a major transition, organizations can help them by:
I. Offering them new incentives for the current work
II. Provide coaches or mentors
III. Offer mid-career development workshops
IV. Provide alternative career routes

A. I, II, and III
B. II, III, and IV
C. I and II
D. II and III

Answer 187

D. II and III

Question 188

Which of the following is not a stage in the adult renewal cycle?
A. Stuck in the doldrums
B. Cocooning
C. Organizational entry
D. Go for it

Answer 188

C. Organizational entry

Question 189

True/False
Employees going through their “down in the doldrums” stage of their career do not want to maintain their effectiveness at work.

Answer 189

False

Question 190

Retirees that have “need to belong” issues have a hard time:
A. Adjusting to having no direction for goals
B. Adjusting to being totally self directed
C. Adjusting to loss of status
D. Adjusting to having no work group to interact with

Answer 190

D. Adjusting to having no work group to interact with

Question 191

Women hold only about _____ percent of top level management positions.
A. 10-15
B. 15-20
C. 5-10
D. 3-5

Answer 191

A. 10-15

Question 192

With “dual-career ladders” the first track is a _____ track and the second is a _____ track.
A. Management; technical
B. Labor; consulting
C. Labor; supervisor
D. Advisory; relations

Answer 192

A. Mangement; technical

Question 193

An unofficial barrier for advancement within an organization
A. Dual career ladders
B. Second class citizenship
C. Career plateau
D. Glass ceiling

Answer 193

D. Glass ceiling

Question 194

The term “career” refers to:
A. A series of work-related positions a person holds throughout life
B. A path of expertise that eventually leads to a job
C. A job lasting for the majority of a person’s life
D. A series of unrelated jobs that a person has throughout their life.

Answer 194

A. A series of work-related positions a person holds throughout life.

Question 195

Career management:
A. Match organizational needs with individual capabilities
B. Assess career path options within and outside the organization
C. Design a career plan that accommodates the organizations needs
D. Identify personal abilities and interests

Answer 195

A. Match organizational needs with individual capabilities.

Question 196

Department-level information:
A. Safety and accident prevention
B. Physical facilities
C. Policies, procedures, rules, and regulations
D. Customer relations

Answer 196

C. Policies, procedures, rules, and regulations.

Question 197

Which of the following is not a sub-goal of evaluation?
A. Promotion
B. Evaluation and training effectiveness
C. Wage and salary decisions
D. Feedback for performance improvement

Answer 197

D. Feedback for performance improvement

Question 198

Which of the following is not a subgoal of development?
A. Feedback of performance improvement
B. Career planning
C. Validation of employee selection approaches
D. Identification of training needs

Answer 198

C. Validation of employee selection approaches

Question 199

Poor performance is usually the result of either a ____ problem or a ____ problem.
A. Skill; will
B. Feedback; behavior
C. Ability; attitude
D. KSAs; behavior

Answer 199

A. Skill; will

Question 200

“To increase the number of invoices processed to 150 per day by October 1st” is an example of a/an:
A. Goal
B. Standard
C. Commitment
D. Expectation

Answer 200

A. Goal

Question 201

Standards are more applicable to:
A. Jobs involving routine, repetitive tasks
B. Managerial and professional jobs
C. Jobs where employees engage in project work
D. All of the above

Answer 201

A. Jobs involving routine, repetitive tasks

Question 202

True/False
Goals and standards are most effective when mutually agreed upon by all affected

Answer 202

True

Question 203

_____ statements create defensiveness on the part of the feedback recipient.
A. Negative
B. “I”
C. Accusing
D. “You”

Answer 203

D. “You”

Question 204

Feedback should always be:
A. Encouraging
B. People-oriented
C. Problem-oriented
D. Positive

Answer 204

C. Problem-oriented

Question 205

From a competitiveness standpoint, performance feedback should be given from:
I. Customers
II. Peers
III. Managers

A. I, II, and III
B. II and III
C. I and III
D. III

Answer 205

A. I, II, and III

Question 206

All of the following are characteristics of a legally defensible performance assessment system except:
A. Raters should have ample opportunity to observe the performance of the ratee
B. Management should be committed to the PA system and communicate this commitment throughout the organization
C. Ratees should be provided with feedback of the results of the PA and should have an opportunity to appeal to a higher level manager if they disagree.
D. PAs should not involve the development and communication of performance standards to employees.

Answer 206

D. PAs should not involve the development and communication of performance standards to employees.

Question 207

True/False
To overcome memory bias, it is a good idea to have the “RATER” keep a written performance journal in order to recall past performance when it comes time to give a performance appraisal.

Answer 207

True

Question 208

All are steps in the performance management cycle except:
A. Determine motivation
B. Establish goals and expectations
C. Evaluate performance
D. Feedback and coaching

Answer 208

A. Determine motivation

Question 209

_______ involves definition, development, and evaluation of employee job performance.
A. Performance management
B. Organization strategy and rewards
C. Coaching and feedback
D. Performance appraisal

Answer 209

A. Performance management

Question 210

What is considered the most problematic area of human resources?
A. Training and development
B. Performance evaluation
C. Talent and acquisition
D. Retention

Answer 210

B. Performance evaluation

Question 211

True/False
Managers typically don’t get rewarded for completing appraisal forms on time or writing detailed performance records.

Answer 211

True

Question 212

Performance management is related to:
A. Higher productivity
B. Lower employee turnover
C. Higher market value for the firm
D. All of the above

Answer 212

D. All of the above

Question 213

_______ use several dimensions of job performance drawn from a job analysis.
A. Alternation ranking
B. Trait ranking system
C. Behaviorally-anchored rating scales
D. Forced distribution

Answer 213

C. Behaviorally-anchored rating scales.

Question 214

BARS are usually developed:
A. With participation
B. From the performance management cycle
C. At random
D. Through the casual model of job performance

Answer 214

A. With participation

Question 215

All are considered objective performance measures except:
A. Absenteeism
B. Trait rating
C. Productivity
D. Sales

Answer 215

B. Trait rating

Question 216

Which of the following is considered a subjective rating measurement of performance?
A. Alternation ranking
B. Forced distribution
C. Paired comparison
D. Weighted checklist

Answer 216

D. Weighted checklist

Question 217

All of the following are employee rights except:
A. The right to have personal records remain confidential
B. Right to fair treatment
C. The right to ‘terminate arbitrarily’
D. Freedom from discriminatory treatment

Answer 217

C. The right to ‘terminate arbitrarily’

Question 218

True/False
Employee rights are only those rights that are currently protected by law or collective bargaining agreements.

Answer 218

False

Question 219

True/False
Although unjustifiable dismissal of an employee is a more widely known issue, training is still important to help lessen the offenses that occur.

Answer 219

True

Question 220

All of the following are things that an organization should do to help them win an ‘unjustifiable dismissal’ suit if an employee ever decides to take them to court except:
A. Maintain accurate HR records
B. Train supervisors and managers to conduct valid appraisals
C. Never dismiss an employee
D. Establish grievance procedures

Answer 220

C. Never dismiss an employee

Question 221

All of the following are principles of discipline a manager should follow when disciplining an employee except:
A. Avoid criticizing the employee’s personal characteristics
B. Discipline the person
C. Make rules and consequences clear
D. Be consistent when enforcing rules

Answer 221

B. Discipline the person

Question 222

True/False
Not only do employees need to comply with the rules, but to be effective over the long term, they also need to agree with them.

Answer 222

True

Question 223

What does discipline encourage employees to do?
A. Not break performance standards
B. Not adhere to rules
C. Not have respect for others
D. Not follow policies

Answer 223

A. Not break performance standards

Question 224

What is the “decision-making leave” day?
A. The day set for the employer to fire the employee
B. The day set to fix the problem at hand
C. The day set that the employee must decide whether or not to stay with the organization
D. The day the employee decides to quit.

Answer 224

C. The day set that the employee must decide whether or not to stay with the organization.

Question 225

What is the first step in both the non-punitive discipline and the progressive discipline systems?
A. Suspension for the inappropriate behavior
B. Written warning of the behavior that needs to be fixed
C. Verbal warning of the inappropriate behavior
D. Having a “decision-making leave” day set

Answer 225

C. Verbal warning of the inappropriate behavior.

Question 226

What is a difference between the non-punitive system and the progressive discipline system?
A. The progressive discipline starts out with a verbal warning while the non-punitive starts with a written warning of the inappropriate behavior.
B. The progressive discipline has the employer terminate while the non-punitive lets the employee decide whether they want to accept responsibility and change or leave the organization.
C. The progressive discipline provides an opportunity for the employee to provide feedback while the non-punitive only allows the employer to provide feedback.
D. The progressive discipline focuses on the employee accepting the rules and the non-punitive system focuses on complying with the rules.

Answer 226

B. The progressive discipline has the employer terminate while the non-punitive lets the employee decide whether they want to accept responsibility and change or leave the organization.

Question 227

When an employer terminates an employee because they are motivated by malice, they are in violation of which of the exceptions to the at-will doctrine?
A. Breach of implied covenant
B. Implied contract
C. Breach of working conditions
D. Public policy

Answer 227

A. Breach of implied covenant

Question 228

True/False
It is important for the employer to have a paper trail to defend against the charge of wrongful discharge.

Answer 228

True

Question 229

When doing a termination interview, which of the following should not be done?
A. Describe the situation leading to the dismissal
B. Have only the supervisor and the employee present
C. Plan the interview carefully
D. Review the specifics of the severance

Answer 229

B. Have only the supervisor and the employee present.

Question 230

An employer should do all of the following to ensure legal termination except?
A. Establish due process
B. Follow procedures at will
C. Establish grievance procedures
D. Communicate prohibitions

Answer 230

B. Follow procedures at will

Question 231

All of the following are things that employers should do to ensure that their employees know and understand the behaviors and expectations that are prohibited or required in the job except:
A. Issuing written policy statements
B. Training only management and supervisors
C. Completing job descriptions
D. Writing up performance criteria

Answer 231

B. Training only managers and supervisors

Question 232

True/False
Even though privacy legislation generally does not cover private employer-employee relationships, many organizations are establishing their own policies governing privacy rights.

Answer 232

True

Question 233

Which of the following is a benefit that organizations can achieve if they recognize employee rights?
A. Enhanced organizational image
B. Increased wage demands
C. Decreased flexibility in job assignments
D. Increased legal costs

Answer 233

A. Enhanced organizational image

Question 234

All of the following are ways employees often feel when employee rights are respected except:
A. They have increased self esteem
B. They feel a heightened sense of job security
C. They feel a heightened sense of unfairness
D. They feel they are being treated with respect

Answer 234

C. They feel a heightened sense of unfairness

Question 235

True/False
Courts and legislative bodies may be less inclined to legislate job security and on-the-job employee rights if employers take a proactive position to protect employee rights on their own.

Answer 235

True

Question 236

All of the following are things that employers should do to verify they have not violated any laws and are not liable for wrongful termination except:
A. Institute a grievance process
B. Keep records of employee personalities
C. Ensure due process is respected
D. Communicate to employees about inappropriate behavior

Answer 236

B. Keep records of employee personalities

Question 237

What is one of the fundamental purposes of financial forecasting?
A. To understand the link between asset requirements and industry
B. To create accurate financial reports that summarize the company’s financial performance for the previous period.
C. To estimate how changes in cost structures or sales will impact the future cash flows and financing needs of the firm.
D. To ensure that the future period’s sales and costs will not exceed historical numbers.

Answer 237

C. To estimate how changes in cost will impact the future cash flows and financing needs of the firm.

Question 238

What are spontaneous accounts?
A. Accounts that are optional to include when creating a financial forecast
B. Accounts that vary naturally with sales
C. Accounts that do not vary with sales
D. Accounts that are left to management’s discretion

Answer 238

B. Accounts that vary naturally with sales.

Question 239

Which type of account changes with sales growth?
A. Spontaneous accounts
B. Discretionary accounts
C. Fixed asset accounts
D. Non-spontaneous accounts

Answer 239

A. Spontaneous accounts

Question 240

If a company expects sales to grow by 10% next year, which account might also increase by 10%?
A. Headquarters utilities
B. Training budget for senior employees
C. General business insurance
D. Cost of goods sold

Answer 240

D. Cost of goods sold.

Question 241

When can the discretionary financing needed (DFN) be determined?
A. After total financing need is determined
B. After total revenue, alone, is projected.
C. After total revenue and expenses are projected
D. After pro-forma financial statements are forecasted using the percent of sales method.

Answer 241

D. After pro-forma financial statements are forecasted using the percent of sales method.

Question 242

Which action decreases the discretionary financing needed (DFN)?
A. Increasing the plowback ratio
B. Decreasing the retention ratio
C. Decreasing the net margin
D. Increasing the payback ratio

Answer 242

A. Increasing the plowback ratio

Question 243

You are a financial manager of a company, and you have projected sales increase for next year of 8%. Which action would you take when you conduct financial forecasting using the percent of sales method?
A. Leave the notes payable account constant in the projected financial statements
B. Change the notes payable account in proportion to sales growth
C. Leave the cash account constant in the projected financial statements
D. Change the long-term liabilities account in proportion to sales growth

Answer 243

A. Leave the notes payable account constant in projected financial statements

Question 244

You are conducting financial forecasting for your firm given the projected sales. What are you doing if you are estimating changes in the balance sheet based on the predicted change in sales?
A. Projecting discretionary accounts
B. Forecasting spontaneous accounts
C. Determining total financing need
D. Calculating retained earnings

Answer 244

B. Forecasting spontaneous accounts

Question 245

What is the sustainable growth rate (SGR)?
A. Accounts that vary with the change in sales
B. Accounts that do not vary with sales but are up to management’s discretion
C. The growth rate that allows a firm to maintain its present financial ratios without issuing new equity
D. The external financing needed to meet the projected growth

Answer 245

C. The growth rate that allows a firm to maintain its present financial ratios without issuing new equity.

Question 246

How can a company reduce its DFN?
A. Increase the dividend payout
B. Reduce prices
C. Increase the net margin
D. Reduce the retention of earnings

Answer 246

C. Increase the net margin

Question 247

Which action increases a company’s SGR?
A. Decreasing asset use efficiency
B. Decreasing profitability
C. Decreasing the leverage the company uses
D. Decreasing the dividend payout

Answer 247

D. Decreasing the dividend payout

Question 248

Which account should be looked at first when examining capacity constraints to determine whether the discretionary financing needed (DFN) can be reduced?
A. Long-term debt
B. Accounts receivable
C. Fixed assets
D. Notes payable

Answer 248

C. Fixed assets

Question 249

How can a firm grow its fixed assets if it is expecting growth but has reached capacity with its fixed assets?
A. Invest a substantial amount of money at one time to increase capacity
B. Increase the net margin
C. Use the percent of sales method to forecast fixed assets
D. Continue to invest in capital through small increments over time.

Answer 249

A. Invest a substantial amount of money at one time to increase capacity.

Question 250

What does the sales capacity equation tell you?
A. How much the firm can grow without issuing new equity
B. How much room a firm has to grow without additional investments in fixed assets.
C. The minimum amount of fixed assets required to support current sales.
D. The limit for a firm’s sales growth.

Answer 250

B. How much room a firm has to grow without additional investment in fixed assets.

Question 251

What is DFN?
A. The additional projected owners’ equity needed given a firm’s expected future growth
B. The additional financing needed given a firm’s expected future growth
C. The total projected liabilities needed given a firm’s expected future growth
D. The total projected assets needed given a firm’s expected future growth

Answer 251

B. The additional financing needed given a firm’s expected future growth

Question 252

You are a financial manager of a company. The marketing department has informed you that the projected sales growth for the upcoming year is 10%. As you conduct financial forecasting, you keep the long-term liabilities the same amount as the previous year and will discuss this account with the other managers later. What type of account is long-term liabilities?
A. Projected asset account
B. Spontaneous account
C. Projected owners’ equity account
D. Discretionary account

Answer 252

D. Discretionary account

Question 253

What does DFN tell us?
A. The total amount of investment needed for future years
B. The total amount of owners’ equity that a firm is projected to have
C. The total amount of liabilities that a firm is projected to have
D. The total amount of funding that management will need to obtain through discretionary financing sources.

Answer 253

D. The total amount of funding that management will need to obtain through discretionary financing sources.

Question 254

Company ABC would like to continue to grow, but in order to maintain control of all decisions and ownership, it wants to avoid issuing new stock. Which calculation will show the company’s leadership the fastest that ABC can grow?
A. Return on equity
B. Sustainable growth rate
C. Discretionary financing needed
D. Key growth indicator

Answer 254

B. Sustainable growth rate

Question 255

What is the major purpose of financial forecasting?
A. To produce a short-term budget for a company or individual
B. To show the company’s growth over the past several years
C. To inform a company how business decisions will impact future growth
D. To make operational changes within a company

Answer 255

C. To inform a company how business decisions will impact future growth.

Question 256

What is the name for a forecast of short-term events that helps a company understand if it has sufficient cash?
A. Cash budget
B. Time value of money
C. Sustainable growth rate
D. Percent of sales forecast

Answer 256

A. Cash budget

Question 257

What is the purpose of a monthly cash budget?
A. To know how much cash you spend on a monthly and yearly basis so you can determine how much you have leftover to invest.
B. To have documentation for tax and lending
C. To ensure that you have enough cash each month to pay your fixed expenses
D. To control cash inflows and outflows so you can balance income with expenditures and savings.

Answer 257

D. To control cash inflows and outflows so you can balance income with expenditures and savings

Question 258

In which situation would a firm need to borrow cash?
A. When the beginning cash balance plus the net cash balance is less than the minimum cash balance required for the month
B. When the firm’s cash receipts are negative
C. When the minimum cash balance for the period has been met, but the firm wants to make sure it has enough cash to cover the beginning cash required for next month
D. When the net cash balance is less than or equal to zero.

Answer 258

A. When the beginning cash balance plus the net cash balance is less than the minimum cash balance required for the month

Question 259

How can you use the envelope method of budgeting to monitor cash flows?
A. Connecting budgeting software to your financial accounts
B. Put cash equal to the total sum of your expenses in one envelope, use that cash for all your expenses, and then write down what you spent it on
C. Use Excel to record all of your income, savings, and expenses
D. Put the amount of money budgeted for each category of your expenses into labeled envelopes and then spend the money in each envelope in that category

Answer 259

D. put the amount of money budgeted for each category of your expenses into labeled envelopes and then spend the money in each envelope on expenses in that category.

Question 260

How should you go about making changes to your budget?
A. Prioritize the changes you want to make and then implement them gradually one by one to make sure they work
B. Make a few changes at a time, grouping them together by how much profit they are likely to bring you
C. Implement every possible change you can think of as soon as you can so that you don’t lose any profits due to an inefficient budget
D. Carefully evaluate the changes you want to make and then implement them all simultaneously so that your budget is the most effective it can be as soon as possible.

Answer 260

A. Prioritize the changes you want to make and then implement them gradually one by one to make sure they work.

Question 261

You are a financial manager of a company. The marketing department has informed you that the projected sales growth for the upcoming year is 15%. As you conduct financial forecasting, you increase cash, accounts receivable, and inventory accounts by 15% – the same as the projected sales growth. What type of accounts are these?
A. Fixed assets accounts
B. Spontaneous accounts
C. Non-spontaneous accounts
D. Discretionary accounts

Answer 261

B. Spontaneous accounts

Question 262

What does it mean when a firm’s calculated DFN is negative?
A. The firm’s balance sheet will be in balance at that point in the forecast
B. The firm needs to consider getting extra financing from the bank
C. The firm will have enough financing to fund projected sales
D. The firm should consider getting extra financing by issuing new stocks.

Answer 262

C. The firm will have enough financing to fund projected sales.

Question 263

Which account is a spontaneous account?
A. Accounts payable
B. Notes payable
C. Common stock
D. Long-term debt

Answer 263

A. Accounts payable

Question 264

Why is SGR useful?
A. It determines the discretionary financing needed
B. It gives the maximum growth rate that allows a firm to maintain its current financial ratios without issuing new equity
C. It provides the firm with the necessary growth rate to maintain sales
D. It demonstrates where DFN should be sources if it is needed.

Answer 264

B. it gives the maximum growth rate that allows a firm to maintain its current financial ratios without issuing new equity.

Question 265

You are analyzing fixed assets to create pro forma financial statements for your company. You realize that, since sales will increase next year, you will also need your manufacturing capacity to increase by the same amount. Currently, you are operating at maximum capacity. You buy an entire new factory and multiple pieces of equipment that increase capacity to much more than you need to meet the sales growth. Which concept describes why such a large purchase was necessary?
A. Sales are uncertain for the future year
B. Fixed assets are lumpy
C. Fixed assets are spontaneous accounts
D. Additional financing could not be obtained

Answer 265

B. Fixed assets are lumpy.

Question 266

How does an investment institution, such as a mutual fund, facilitate the circulation of money in the economy?
A. By raising capital on a contractual basis, such as an insurance contract
B. By providing individuals and firms access to financial markets to buy or sell financial securities
C. By insuring deposits in investment accounts up to $250,000 to promote public confidence
D. By accepting deposits of money, paying interest on deposits, and providing loans to individuals and organizations.

Answer 266

B. By providing individuals and firms access to financial markets to buy or sell financial securities.

Question 267

Which type of economic indicator is used by governments and policymakers to implement or alter policies in an effort to avoid or minimize the effects of an economic downturn?
A. Coincident indicator
B. Leading indicator
C. Lagging indicator
D. Correlated indicator

Answer 267

B. Leading indicator

Question 268

Which type of ratio should be used to examine the cost efficiency of a firm’s production?
A. Liquidity.
B. Efficiency
C. Market
D. Profitability

Answer 268

D. Profitability

Question 269

Which action will increase the return on equity of a firm?
A. Decreasing the profitability of the firm
B. Decreasing the debt financing of the firm
C. Increasing the liquidity of the firm
D. Increasing the asset usage efficiency of the firm

Answer 269

D. Increasing the asset usage efficiency of the firm

Question 270

An investor is analyzing a portfolio to decide if there are any stocks that should be removed from the pool of financial securities. Quiet Flag Industries, a company the investor has invested in, has just released its annual report. Which method should the investor use to see if the company has improved?
A. Cross-sectional analysis
B. Trend analysis
C. Progress management
D. Focus analysis

Answer 270

B. Trend analysis

Question 271

An investment analyst is concerned about a construction company’s ability to sell its inventory to meet current obligations, because much of the inventory (commercial buildings) it builds and sells takes longer than a year to construct. Which ratio should this analyst use to consider the effect of the firm’s inventory on the firm’s ability to meet current obligations?
A. Inventory ratio
B. Quick ratio
C. Current ratio
D. Leverage ratio

Answer 271

B. Quick ratio

Question 272

A company has calculated variances of a budget and actual cash flows that indicate the firm’s strengths and weaknesses in cash flows and its budgeting process. Which major use of cash budgeting is this an example of?
A. Assessment of future needs
B. Performance evaluation
C. Standardization
D. Corrective action

Answer 272

B. Performance evaluation

Question 273

Which type of expense is a magazine subscription?
A. Variable expense
B. Fixed expense
C. Asset expense
D. Monitored expense

Answer 273

A. Variable expense

Question 274

A company is developing a financial forecast for the next year. The company plans to implement a new factory that will increase production resulting sales by 20%. Since the company’s assets are increasing significantly, what else must increase?
A. Financing
B. Accounts receivable turnover
C. Profit turnover
D. Gross margin

Answer 274

A. Financing

Question 275

A company that manufactures televisions must obtain financing to increase the company’s inventory levels. A manager at the company knows that current investment markets are tight, and it may be difficult for the company to obtain additional financing for the next year. The manager wants to propose a way for the firm to reduce its DFN. What should the manager suggest to reduce next year’s DFN?
A. Increase the amount spent on fixed assets to increase production capacity
B. Increase sales growth, resulting in a larger amount of revenue coming to the firm
C. Lower the amount of dividends that are paid out to shareholders next year
D. Lower the net margin by decreasing the sales prices and maintaining current costs.

Answer 275

C. Lower the amount of dividends that are paid out to shareholders next year.

Question 276

Freedom Rock Bicycles has a sales capacity of $10 million. When sales exceed this capacity, the company must invest $200,000 in new equipment. Freedom Rock Bicycles had sales of $9 million in one year, and it projects a sales growth of 10%. The net fixed assets in the year were $500,000. By how much will the company’s discretionary financing need increase?
A. $0
B. $50,000
C. $200,000
D. $900,000

Answer 276

A. $0

Question 277

Why are financial models helpful in financial forecasting?
A. Models are required by the SEC when a firm plans to issue additional stock on the public market
B. Models show the future supply schedule for a firm, which allows for negotiation with suppliers.
C. Models provide credibility to a firm’s financial statements for government agencies to review
D. Models allow users to see the complex relationships between sales and other aspects of the business.

Answer 277

D. Models allow users to see the complex relationships between sales and other aspects of the business.

Question 278

How does an analyst use the hurdle rate?
A. It is used to compare with the IRR to determine whether a project should be accepted
B. It is used to calculate the IRR for a project and determine its value
C. It is used with the IRR as a method to find the required payment amount for a project
D. It is used to determine the time frame of a project.

Answer 278

A. It is used to compare with the IRR to determine whether a project should be accepted.

Question 279

What would profitability index (PI) be useful for?
A. Computing the future value of a project in the future rather than the present value
B. Calculating returns for a project that does not have a definite return rate for IRR or NPV
C. Determining whether a firm should invest in projects with different initial outlays
D. Deciding between projects that are mutually exclusive

Answer 279

C. Determining whether a firm should invest in projects with different initial outlays

Question 280

An investor really cares about having voting rights in a firm.
Which type of financial security should this investor purchase?
A. Preferred stock
B. Secured bonds
C. Zero-coupon bonds
D. Common stock

Answer 280

D. Common stock

Question 281

The lowest rate of return is required by which type of investor or lender?
A. Common stockholder
B. Bondholder
C. Preferred stockholder
D. Bank

Answer 281

D. Bank

Question 282

Which cash flow of a particular project would be a sunk cost?
A. $20,000 market value of equipment at the end of the project
B. $35,000 incremental cash flows for the third year of the project
C. $50,000 marketing study conducted three months ago for the project
D. $100,000 initial investment for the project

Answer 282

C. $50,000 marketing study conducted three months ago for the project.

Question 283

Quiet Flag Industries has a large piece of land worth $250,000 that it is considering using for a miniature golf business. When evaluating cash flows that would result from doing this project, should Quiet Flag consider the land value? Why/Why not?
A. No, the land value represents an existing expense
B. No, the land value represents a sunk cost
C. Yes, the land value represents cannibalization
D. Yes, the land value represents an opportunity cost.

Answer 283

D. Yes, the land value represents an opportunity cost.

Question 284

What is the effect of debt financing on a firm’s income?
A. Debt interest payments have no effect on taxable income
B. Income is taxed at a lower rate when a firm has more debt
C. Debt interest payments reduce taxable income
D. Income is taxed at a lower rate when a firm has no debt

Answer 284

C. Debt interest payments reduce taxable income

Question 285

An investor is reviewing the bonds of four different companies: Company A issues AA-rated bonds. Company B issues A-rated bonds. Company C issues BB-rated bonds. Company D issues C-rated bonds. Which company is likely to provide the lowest rate of return to the investor?
A. Company A
B. Company B
C. Company C
D. Company D

Answer 285

A. Company A

Question 286

How is the cost of capital used in the decision-making process for a capital investment project?
A. It is input into cash flow calculations
B. It is used as the discount rate of cash flows
C. It is compared to the NPV
D. It is part of the initial investment.

Answer 286

B. It is used as the discount rate of cash flows.