PHR Business Management 5

Question 1

Which external factor analysis examines political, economic, social, and technological influences?

Accepted Answer

PEST analysis

Answer

PEST analysis evaluates political, economic, social, and technological external factors.

Question 2

A vision statement differs from a mission statement because it primarily describes:

Accepted Answer

The desired future state of the organization

Answer

A vision statement articulates the aspirational future the organization seeks to achieve.

Question 3

Which budgeting method requires justifying all expenses from scratch each period?

Accepted Answer

Zero-based budgeting

Answer

Zero-based budgeting starts at zero and requires justification for every expense each cycle.

Question 4

Stakeholders in a business context include:

Accepted Answer

Anyone affected by or interested in the organization

Answer

Stakeholders are any parties affected by or having interest in the organization, including employees, customers, and communities.

Question 5

Which risk response strategy involves taking action to reduce the likelihood or impact of a risk?

Accepted Answer

Risk mitigation

Answer

Risk mitigation reduces the probability or impact of an identified risk.

PHR Practice Test