3/28/25, 7:55
AM
2024-2025 SHRM PRACTICE FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Terms in this set (144)
What company is using a corporate C - Business Acumen
strategy of differentiation? Differentiation focuses on setting a product or service apart by giving it unique
A. A company sells in volume and offers characteristics that customer's value and for which they will pay a premium. The
discounts to its best customers other options deal with the ways to create a cost advantage.
B. The finished product is sold at
a lower price than that of the
competition
C. A company develops a product that is
uniquely easy to use and charges a
premium price
D.A company orders large quantities of
parts to get the greatest discount
What type of learner acquires knowledge B - Learning and Development
most effectively though a hands-on Kinesthetic learns, also known as tactile learners, learn best through a hands-on
approach? approach. They prefer activity to explore the physical world around them. They
A. Synthesis learner may find it hard to sit still for long periods and may become distracted by their
B.Kinesthetic learner need for activity and exploration.
C. Visual learner
D.Auditory learner
What financial document lists the B - Business Acumen
revenues, expenses, and profits of an The income statement shows revenue, expenses and profits for the organization.
organization for a designation period of The balance sheet shows its assets, liabilities, and shareholders' equity.
time?
A. Balance sheet
B.Income statement
C. Financial statement
D.Accounting entry
1/27
,3/28/25, 7:55
AM
How can compensation and benefits A - Technology Management
technology improve a multinational Automated record keeping and specialized reporting helps to ensure organized
enterprise's regulatory compliance? centralized data and thorough record keeping and also helps avoid fines, penalties,
A. Automated record keeping and threats of lawsuits.
and specialized reporting
B.Global settings for dates, numbers
and time zones
C. System self-service administrative
capabilities
Accurate attendanceinformation
Chain of command refers to the C - Structure of the HR Function
A. extent to which policies and procedures Chain of command refers to a line authority within an organization. Authority relates
govern the rules of the organization to the scope of responsibilities that define the area in which a manager is
B.number of individuals who report to a empowered to make decisions. If is growing less distinct in many organizations
supervisor today.
C. line of authority within an organization
D.balance between standardization and
localization
After conducting a reference D - Talent Acquisition
background check, HR discovers that Every employer has a legal duty to exercise due diligence in hiring. In certain
a leading circumstances, an employer may give the candidate the opportunity to explain
candidate misrepresented dates of results of a reference background check that might have an adverse effect on an
previous employment both on the resume employment decision. However, most job applications include a statement that
and the job application. What is the most signing the job application attests to truthfulness of the information contained in the
probable outcome of learning this document. Some employers even advise candidates at the onset of the application
information? process about the potential negative consequences of providing any false or
A. Check criminal records for felonies or intentionally misleading information.
misdemeanors
B.Conduct a credit history check with
a consumer reporting agency
C. Ask for references about the
employee's professionalism
D.Do not extent an offer of employment
An organization conducts a pay survey and A - Total Rewards
finds that some of its key employees are By definition, incentive pay is paying for performance beyond normal expectations.
underpaid. They want to raise the pay for Employees receive the incentive pay only if specific goals are met. As long as
these employees but are concerned about incentive pay and base pay are not commingled, employees should perceive it as a
adding to their salary burden. Which of the reward (and not an entitlement) and the employer will benefit from a greater return
following is their BEST option? on investment for performance beyond normal expectations.
A. Incentive pay
B.Step-rate adjustments linked to
performance
C. Market-based increases
D.Cost-of-living adjustments
2/27
, 3/28/25, 7:55
AM
What is the ESSENTIAL concept behind the A - Business Acumen
stakeholder theory? The stakeholder concept proposes that any organization operates within a complex
A. An organization affects and is affected environment, in which if affects and is affected by a variety of forces or
by complex interests. stakeholders, who all share in the value of the organization and its activities.
B. True value must be
determined by the increase in a firm's
net worth.
C. Organizations must see employees
as partners rather than foes.
D.All stakeholders must receive value for
a firm to be considered socially
responsible.
Which of the following statements A - Employer & Labor Relations
BEST defines due process in Due process is a principle that ensures that employees are informed of expectations
discipline for a dischargeable and the consequences of failure to meet those expectations, are treated fairly
offense? and factually, and are allowed an opportunity to defend themselves and appeal
A. Due process is designed to ensure the decision. Due process does not explicitly require peer review, nor is it limited to
that disciplined employees are treated the setting of a unionized workplace. An attorney's review may be advisable but
fairly is not required to have fulfilled the obligation of providing an employee due
and afforded opportunity to defend process.
themselves.
B.Due process is a feature of a
progressive discipline system that
incorporates peer review.
C. Due process ensures that
discipline cases for dischargeable
offenses are reviewed by an attorney
before action is taken.
D.Due process is designed to
communicate and protect an employee's
rights in a unionized workplace.
B - Employer & Labor Relations
Wildcat strikes are work stoppages that are neither sanctioned for stimulated by the
What type of strike occurs without the union, although union officials may be aware of them. These strikes may also take the
approval of union leadership? form of excessive absences, especially when there are no-strike clauses in contracts.
A. Jurisdictional strikes Jurisdictional strikes are the result of
B.Wildcat strikes disagreements between unions; they occur when one union's members walk out
C. Sympathystrikes to force an employer to assign work to them instead of to another union.
D.Economicstrikes Sympathy strikes occur when one union expresses its support for another union's
strike even though it has not dispute with the employer. Economic strikes are
strikes that occur when collective bargaining fails to reach an agreement.
Do heterogeneous teams generally A - Diversity, Equity & Inclusion Competency
outperform homogeneous teams? There are differences of opinion and approach in heterogeneous teams. If the teams
A. Yes, but only if they are well managed. are well managed, these differences become value-added strengths. If the teams
B.No, they are too difficult to manage and are not well managed, they can become difficult to coordinate and may not fulfill
coordinate. their charter.
C. No, there are too many
different perspectives.
D.Yes, they get off to a faster start
and maintain an advantage.
Which of the following is a compensable D - Total Rewards
factor? Compensable factors reflect how work is done and are supported by
A. Benefits documentation such as job descriptions. The compensable factors flow from the
B.Seniority work itself and not the employee holding the job. Therefore, seniority is not a
C. Exempt status compensable factor in determining the relative worth of a job.
D.Skills
3/27
AM
2024-2025 SHRM PRACTICE FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Terms in this set (144)
What company is using a corporate C - Business Acumen
strategy of differentiation? Differentiation focuses on setting a product or service apart by giving it unique
A. A company sells in volume and offers characteristics that customer's value and for which they will pay a premium. The
discounts to its best customers other options deal with the ways to create a cost advantage.
B. The finished product is sold at
a lower price than that of the
competition
C. A company develops a product that is
uniquely easy to use and charges a
premium price
D.A company orders large quantities of
parts to get the greatest discount
What type of learner acquires knowledge B - Learning and Development
most effectively though a hands-on Kinesthetic learns, also known as tactile learners, learn best through a hands-on
approach? approach. They prefer activity to explore the physical world around them. They
A. Synthesis learner may find it hard to sit still for long periods and may become distracted by their
B.Kinesthetic learner need for activity and exploration.
C. Visual learner
D.Auditory learner
What financial document lists the B - Business Acumen
revenues, expenses, and profits of an The income statement shows revenue, expenses and profits for the organization.
organization for a designation period of The balance sheet shows its assets, liabilities, and shareholders' equity.
time?
A. Balance sheet
B.Income statement
C. Financial statement
D.Accounting entry
1/27
,3/28/25, 7:55
AM
How can compensation and benefits A - Technology Management
technology improve a multinational Automated record keeping and specialized reporting helps to ensure organized
enterprise's regulatory compliance? centralized data and thorough record keeping and also helps avoid fines, penalties,
A. Automated record keeping and threats of lawsuits.
and specialized reporting
B.Global settings for dates, numbers
and time zones
C. System self-service administrative
capabilities
Accurate attendanceinformation
Chain of command refers to the C - Structure of the HR Function
A. extent to which policies and procedures Chain of command refers to a line authority within an organization. Authority relates
govern the rules of the organization to the scope of responsibilities that define the area in which a manager is
B.number of individuals who report to a empowered to make decisions. If is growing less distinct in many organizations
supervisor today.
C. line of authority within an organization
D.balance between standardization and
localization
After conducting a reference D - Talent Acquisition
background check, HR discovers that Every employer has a legal duty to exercise due diligence in hiring. In certain
a leading circumstances, an employer may give the candidate the opportunity to explain
candidate misrepresented dates of results of a reference background check that might have an adverse effect on an
previous employment both on the resume employment decision. However, most job applications include a statement that
and the job application. What is the most signing the job application attests to truthfulness of the information contained in the
probable outcome of learning this document. Some employers even advise candidates at the onset of the application
information? process about the potential negative consequences of providing any false or
A. Check criminal records for felonies or intentionally misleading information.
misdemeanors
B.Conduct a credit history check with
a consumer reporting agency
C. Ask for references about the
employee's professionalism
D.Do not extent an offer of employment
An organization conducts a pay survey and A - Total Rewards
finds that some of its key employees are By definition, incentive pay is paying for performance beyond normal expectations.
underpaid. They want to raise the pay for Employees receive the incentive pay only if specific goals are met. As long as
these employees but are concerned about incentive pay and base pay are not commingled, employees should perceive it as a
adding to their salary burden. Which of the reward (and not an entitlement) and the employer will benefit from a greater return
following is their BEST option? on investment for performance beyond normal expectations.
A. Incentive pay
B.Step-rate adjustments linked to
performance
C. Market-based increases
D.Cost-of-living adjustments
2/27
, 3/28/25, 7:55
AM
What is the ESSENTIAL concept behind the A - Business Acumen
stakeholder theory? The stakeholder concept proposes that any organization operates within a complex
A. An organization affects and is affected environment, in which if affects and is affected by a variety of forces or
by complex interests. stakeholders, who all share in the value of the organization and its activities.
B. True value must be
determined by the increase in a firm's
net worth.
C. Organizations must see employees
as partners rather than foes.
D.All stakeholders must receive value for
a firm to be considered socially
responsible.
Which of the following statements A - Employer & Labor Relations
BEST defines due process in Due process is a principle that ensures that employees are informed of expectations
discipline for a dischargeable and the consequences of failure to meet those expectations, are treated fairly
offense? and factually, and are allowed an opportunity to defend themselves and appeal
A. Due process is designed to ensure the decision. Due process does not explicitly require peer review, nor is it limited to
that disciplined employees are treated the setting of a unionized workplace. An attorney's review may be advisable but
fairly is not required to have fulfilled the obligation of providing an employee due
and afforded opportunity to defend process.
themselves.
B.Due process is a feature of a
progressive discipline system that
incorporates peer review.
C. Due process ensures that
discipline cases for dischargeable
offenses are reviewed by an attorney
before action is taken.
D.Due process is designed to
communicate and protect an employee's
rights in a unionized workplace.
B - Employer & Labor Relations
Wildcat strikes are work stoppages that are neither sanctioned for stimulated by the
What type of strike occurs without the union, although union officials may be aware of them. These strikes may also take the
approval of union leadership? form of excessive absences, especially when there are no-strike clauses in contracts.
A. Jurisdictional strikes Jurisdictional strikes are the result of
B.Wildcat strikes disagreements between unions; they occur when one union's members walk out
C. Sympathystrikes to force an employer to assign work to them instead of to another union.
D.Economicstrikes Sympathy strikes occur when one union expresses its support for another union's
strike even though it has not dispute with the employer. Economic strikes are
strikes that occur when collective bargaining fails to reach an agreement.
Do heterogeneous teams generally A - Diversity, Equity & Inclusion Competency
outperform homogeneous teams? There are differences of opinion and approach in heterogeneous teams. If the teams
A. Yes, but only if they are well managed. are well managed, these differences become value-added strengths. If the teams
B.No, they are too difficult to manage and are not well managed, they can become difficult to coordinate and may not fulfill
coordinate. their charter.
C. No, there are too many
different perspectives.
D.Yes, they get off to a faster start
and maintain an advantage.
Which of the following is a compensable D - Total Rewards
factor? Compensable factors reflect how work is done and are supported by
A. Benefits documentation such as job descriptions. The compensable factors flow from the
B.Seniority work itself and not the employee holding the job. Therefore, seniority is not a
C. Exempt status compensable factor in determining the relative worth of a job.
D.Skills
3/27
