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SHRM-CP Exam
SHRM.SHRM-CP.v2022-04-08.q154 Dumps

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Question 41

Which approach to budgeting requires that every expense be justified?

A.historical budgeting
B.parallel budgeting
C.zerobased budgeting
D.bottomup budgeting

Correct Answer: C

Explanation: In zerobased budgeting, every expense must be justified. Zerobased budgeting programs attempt to streamline the business by judging the necessity of every item. Historical budgeting, on the other hand, assumes that the expenses from previous years will be carried over. Obviously, zerobased budgeting is a more timeconsuming process, though it can produce substantial savings. Zerobased and historical budgeting programs may be executed in a topdown or bottomup fashion, depending on whether top managers or all relevant managers are included.

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Question 42

Defined contribution plans for organizations include all of the following options except:

A.401(k)
B.Money purchase plans
C.Profitsharing plans
D.Cashbalance plans
E.Target benefit plans

Correct Answer: D

Explanation: Cashbalance plans fall under the category of deferred contribution but not under the category of defined contribution. Answer choices A, B, C, and E - 401(k), money purchase plans, profitsharing plans, and target benefit plans - do, however, fall under defined contribution from employers toward employee retirement accounts.

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Question 43

Which type of strike is launched despite a nostrike clause in the employee contract?

A.sitdown strike
B.secondary strike
C.hot cargo strike
D.wildcat strike

Correct Answer: D

Explanation: A wildcat strike is launched despite a nostrike clause in the employee contract. Obviously, these strikes create intense conflict between employer and union. Sitdown strikes, which are prohibited by law, occur inside the work facility. Secondary boycotts are attempts by the union to keep an external company from doing business with the employer. In most cases, secondary strikes are illegal. A hot cargo strike, more commonly known as a hot cargo picket, aims to keep the employer from doing business with some other employer opposed by the union. Hot cargo pickets are prohibited by law as well.

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Question 44

Administrative laws, such as agency rules and regulations, take effect how many days after being published in the Federal Register?

A.15 days
B.30 days
C.45 days
D.60 days

Correct Answer: B

Explanation: Administrative laws take effect 30 days after being published in the Federal Register. The option for 15 days is far too short, and the options for 45 days and 60 days reflect a time frame in which the law would already have taken effect.

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Question 45

Which of the following is a consequence of the SarbanesOxley Act?

A.Employees may trade stock during pension fund blackout periods.
B.Companies are allowed to conduct their own stock appraisal.
C.CEOs may be punished for fraudulent financial reports.
D.Audit partners must alternate every two years.

Correct Answer: C

Explanation: One consequence of the SarbanesOxley Act is that CEOs may be punished for fraudulent financial reports. This act was passed in 2002 after several large corporations, most notably Enron, collapsed under the weight of unethical accounting and executive mismanagement. The intention of the SarbanesOxley Act was to make top officials culpable for dishonest and reckless accounting. The act explicitly forbade employees from trading stocks during pension fund blackout periods, and asserted that companies must have their stock appraised by a certified external organization. The act also declared that audit partner assignments must alternate every five years.

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