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Total 23 questions
Exam Code: C8                Update: Oct 15, 2025
Exam Name: Business Acumen for Compensation Professional

WorldatWork Business Acumen for Compensation Professional C8 Exam Dumps: Updated Questions & Answers (October 2025)

Question # 1

What choices are most commonly faced by companies in the decline phase of the business lifecycle?

A.

Whether to improve productivity, obtain new operating capital or generate new sales growth

B.

Whether to reinvest in existing products, create new products or maximize profits with current products as long as possible

C.

Whether to acquire competitors with greater market share or merge with more successful companies

D.

Whether to increase sales, maximize distribution capacity or increase efficiency to meet growing demand

Question # 2

Regarding fixed and variable costs, what are Finance’s primary concerns?

A.

Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

B.

Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

C.

Fixed costs and variable costs are equally important and both should be kept to a minimum.

D.

Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Question # 3

The “return” represented by the Total Shareholder Return (TSR) metric is the increase in what?

A.

Earnings

B.

Shares

C.

Market capitalization

D.

Increased market value and reinvested dividends paid

Question # 4

The “Value Store” retail company offers its customers low prices and ease of purchase by minimizing waste and striving for high efficiency. What strategy is the “Value Store” using?

A.

Operational excellence

B.

Product/service leadership

C.

Customer intimacy

D.

Brand loyalty

Question # 5

What metric should compensation professionals pay closest attention to for ensuring alignment between the compensation strategy and the HR and business strategies?

A.

Variable pay costs as a percent of total compensation

B.

Total compensation expense for the business, including base pay and variable pay

C.

Reward costs as a percent of total operating costs

D.

The organization’s market compa-ratio

Question # 6

What is a “profit model?”

A.

The intention or purpose of the business

B.

A descriptor for how the company works

C.

The financial objectives of the organization

D.

The plan for how the organization generates revenue and makes money

Question # 7

When connecting with other business units, what best describes a reason why is it important to keep up to date on organizational challenges?

A.

Because you will be more informed when differences of opinion occur, lending more credibility to your position

B.

Because you can demonstrate your understanding of issues from multiple perspectives

C.

Because you will be able to explain the negative consequences of opposing your position

D.

Because stakeholders with diverse opinions tend to compromise when they are aware that others know their weaknesses

Question # 8

In what stage of the business lifecycle do companies typically begin standardizing procedures through policy creation?

A.

Start-up

B.

Growth

C.

Mature

D.

Decline

Question # 9

The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility’s net operating profit after taxes was 10,500,000. What was the economic value added (EVA) using the EVA formula?

A.

500,000

B.

840,000

C.

8,000,000

D.

9,700,000

Question # 10

What best describes a necessary skill and/or behavior in relation to business acumen?

A.

An understanding of the culture and subcultures of your organization

B.

The capacity to manage multiple projects and priorities and meet deadlines

C.

A willingness to take on additional duties and responsibilities when resources are limited

D.

A thorough understanding of the products and/or services your organization provides

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Total 23 questions

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