HRCI- SPHR Practice Exam 2026-2027 150
QUESTIONS AND 100% VERIFIED SOLUTIONS,
ELABORATED & DETAILED CORRECT ANSWERS
"This employee handbook is not intended to be part of a contract..." is being used in an employee
handbook to preserve which of the following?
A. Employee rights
B. Employer rights
C. Employment at will
D. The public policy exception - CORRECT ANSWER: C. Disclaimers such as the one in the
question are used to preserve the nature of at-will employment between the employer and
employee.
A business case can help management make better-quality decisions because it does which of the
following?
A. Communicates how a plan will influence operational efficiencies
B. Provides multiple options for solving a business problem
C. Describes possible risks that could result from taking action
D. Quantitatively analyzes relevant HR trends - CORRECT ANSWER: C. The main purpose of
building a business case is to help an employer make a decision on a particular course of action.
This includes a description of the potential risks of taking—or in some cases, not taking—action.
A corporation that franchises its business model also requires its franchisees to use their
computer system to process employee payroll. This practice is most likely to trigger which of the
following conditions?
A. A claim of indirect control
B. The ostensible agency theory
C. Joint employment liability
,D. All of the above - CORRECT ANSWER: D. As McDonald's Corporation discovered, certain
practices with its franchisees led to a charge that the corporation indirectly controlled the
conditions of employees, causing them to "ostensibly" believe that they were employees of
McDonald's Corporation, not only of the franchise. For this reason, the National Labor Relations
Board revised their definition of joint employment, and franchise employees were allowed to sue
the corporation and franchisee in a class action wage and hour lawsuit.
A cost-of-living pay adjustment is the best example of what type of compensation strategy?
A. Quartile
B. Entitlement
C. Performance
D. Equity - CORRECT ANSWER: B. Entitlement forms of pay are those that reward employees
for years of service or for loyalty. A cost-of-living adjustment is not given based on any
particular performance criteria; therefore, it is a form of entitlement pay.
A large employer with multiple facilities all across the United States has decided to raffle off a
car at the end of the year. Employees will automatically get one entry for each week that they
work without injury. Which of the following is the employer at risk for?
A. Tax code violation
B. Discrimination
C. Retaliation
D. None of the above - CORRECT ANSWER: C. Safety incentive programs that reward
employees who do not get injured may inadvertently retaliate against those who do get hurt.
Additionally, incentive programs that are too generous may discourage reporting of injuries.
A large network software firm creates a program for women in leadership. Participants meet
every month for a year to provide peer support toward taking on more leadership tasks or roles.
At the end of the third year, more than 100 women have graduated from the program. This
company is engaged in which of the following?
A. Diversity-based networking
B. Learning circles
C. Executive groups
,D. Incubators - CORRECT ANSWER: B. Learning circles are called many things (Socratic
circles, quality circles, etc.), but all have a similar purpose. Learning circles are generally
organized around a theme or purpose and are characterized by diversity, respect, and
collaboration toward success in specific outcomes or targets.
A local gym recently sold the rights to another company to use their name, supply chain
resources, and workflow processes in another city. This is an example of what type of business
structure?
A. Subsidiary
B. Merger
C. Joint venture
D. Franchising - CORRECT ANSWER: D. Franchising is a business structure in which one
company licenses the rights to another business to use their brand, supply chain, and workflow
practices. Ownership remains separate in this type of structure.
A major sandwich restaurant hires 15-year-old workers to operate a meat slicer. This may violate
which of the following?
A. The Food and Drug Administration
B. Food Safety Management
C. The Fair Labor Standards Act
D. The Occupational Safety and Health Act - CORRECT ANSWER: C. The Fair Labor
Standards Act addresses more than just legal compensation; it also limits the type of work that
may be done by minors. In this example, a meat slicer is considered a hazardous job and is
therefore prohibited for workers between the ages of 14 and 15.
A review of the human capital management plan (HCMP) is most likely to occur in what type of
audit?
A. Risk assessment
B. HR
C. GAAP
, D. Internal revenue (tax) - CORRECT ANSWER: B. A human resource audit is a type of
assessment used to gather information about an organization that can be used in decision-
making. Evaluating the HCMP is useful to gather data about employee skillsets and future plans
to make decisions about current and future staffing levels.
A safety suggestion system is an example of which of the following?
A. Employee survey
B. Downward communication
C. Upward communication
D. Incentive - CORRECT ANSWER: C. Any type of suggestion system allows an upward flow
of communication from employees to management.
A shift of a union's focus to issues of pay equity and flexible work arrangements is most likely an
effort to organize which type of worker?
A. Millennials
B. Blue collar
C. Women
D. Liberal - CORRECT ANSWER: C. The growing percentage of women in the workforce has
forced unions to alter their focus on issues that matter to this demographic. These issues include
child, paid family leave, maternity leave, pay equity, and flexible work arrangements, just to
name a few.
A software developer in the Midwest has decided to offer voluntary microchipping of their
employees. The chips will be medically inserted into the individual's right hand and will allow
employees to open doors, clock in, and even make purchases in the company cafeteria. What
type of data is being collected?
A. Biometric
B. Personal
C. Identity
QUESTIONS AND 100% VERIFIED SOLUTIONS,
ELABORATED & DETAILED CORRECT ANSWERS
"This employee handbook is not intended to be part of a contract..." is being used in an employee
handbook to preserve which of the following?
A. Employee rights
B. Employer rights
C. Employment at will
D. The public policy exception - CORRECT ANSWER: C. Disclaimers such as the one in the
question are used to preserve the nature of at-will employment between the employer and
employee.
A business case can help management make better-quality decisions because it does which of the
following?
A. Communicates how a plan will influence operational efficiencies
B. Provides multiple options for solving a business problem
C. Describes possible risks that could result from taking action
D. Quantitatively analyzes relevant HR trends - CORRECT ANSWER: C. The main purpose of
building a business case is to help an employer make a decision on a particular course of action.
This includes a description of the potential risks of taking—or in some cases, not taking—action.
A corporation that franchises its business model also requires its franchisees to use their
computer system to process employee payroll. This practice is most likely to trigger which of the
following conditions?
A. A claim of indirect control
B. The ostensible agency theory
C. Joint employment liability
,D. All of the above - CORRECT ANSWER: D. As McDonald's Corporation discovered, certain
practices with its franchisees led to a charge that the corporation indirectly controlled the
conditions of employees, causing them to "ostensibly" believe that they were employees of
McDonald's Corporation, not only of the franchise. For this reason, the National Labor Relations
Board revised their definition of joint employment, and franchise employees were allowed to sue
the corporation and franchisee in a class action wage and hour lawsuit.
A cost-of-living pay adjustment is the best example of what type of compensation strategy?
A. Quartile
B. Entitlement
C. Performance
D. Equity - CORRECT ANSWER: B. Entitlement forms of pay are those that reward employees
for years of service or for loyalty. A cost-of-living adjustment is not given based on any
particular performance criteria; therefore, it is a form of entitlement pay.
A large employer with multiple facilities all across the United States has decided to raffle off a
car at the end of the year. Employees will automatically get one entry for each week that they
work without injury. Which of the following is the employer at risk for?
A. Tax code violation
B. Discrimination
C. Retaliation
D. None of the above - CORRECT ANSWER: C. Safety incentive programs that reward
employees who do not get injured may inadvertently retaliate against those who do get hurt.
Additionally, incentive programs that are too generous may discourage reporting of injuries.
A large network software firm creates a program for women in leadership. Participants meet
every month for a year to provide peer support toward taking on more leadership tasks or roles.
At the end of the third year, more than 100 women have graduated from the program. This
company is engaged in which of the following?
A. Diversity-based networking
B. Learning circles
C. Executive groups
,D. Incubators - CORRECT ANSWER: B. Learning circles are called many things (Socratic
circles, quality circles, etc.), but all have a similar purpose. Learning circles are generally
organized around a theme or purpose and are characterized by diversity, respect, and
collaboration toward success in specific outcomes or targets.
A local gym recently sold the rights to another company to use their name, supply chain
resources, and workflow processes in another city. This is an example of what type of business
structure?
A. Subsidiary
B. Merger
C. Joint venture
D. Franchising - CORRECT ANSWER: D. Franchising is a business structure in which one
company licenses the rights to another business to use their brand, supply chain, and workflow
practices. Ownership remains separate in this type of structure.
A major sandwich restaurant hires 15-year-old workers to operate a meat slicer. This may violate
which of the following?
A. The Food and Drug Administration
B. Food Safety Management
C. The Fair Labor Standards Act
D. The Occupational Safety and Health Act - CORRECT ANSWER: C. The Fair Labor
Standards Act addresses more than just legal compensation; it also limits the type of work that
may be done by minors. In this example, a meat slicer is considered a hazardous job and is
therefore prohibited for workers between the ages of 14 and 15.
A review of the human capital management plan (HCMP) is most likely to occur in what type of
audit?
A. Risk assessment
B. HR
C. GAAP
, D. Internal revenue (tax) - CORRECT ANSWER: B. A human resource audit is a type of
assessment used to gather information about an organization that can be used in decision-
making. Evaluating the HCMP is useful to gather data about employee skillsets and future plans
to make decisions about current and future staffing levels.
A safety suggestion system is an example of which of the following?
A. Employee survey
B. Downward communication
C. Upward communication
D. Incentive - CORRECT ANSWER: C. Any type of suggestion system allows an upward flow
of communication from employees to management.
A shift of a union's focus to issues of pay equity and flexible work arrangements is most likely an
effort to organize which type of worker?
A. Millennials
B. Blue collar
C. Women
D. Liberal - CORRECT ANSWER: C. The growing percentage of women in the workforce has
forced unions to alter their focus on issues that matter to this demographic. These issues include
child, paid family leave, maternity leave, pay equity, and flexible work arrangements, just to
name a few.
A software developer in the Midwest has decided to offer voluntary microchipping of their
employees. The chips will be medically inserted into the individual's right hand and will allow
employees to open doors, clock in, and even make purchases in the company cafeteria. What
type of data is being collected?
A. Biometric
B. Personal
C. Identity
