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ISM Exam LEAD Topic 4 Question 21 Discussion

Actual exam question for ISM's LEAD exam
Question #: 21
Topic #: 4
[All LEAD Questions]

Which of the following requires a working knowledge of payback and net present value?

Show Suggested Answer Hide Answer
Suggested Answer: A

Policy Violation: The employee violated the company's strict gift policy by accepting an $80 ticket, which exceeds the $25 limit.

Appropriate Response: Conducting face-to-face training addresses the issue by educating the employee on the company's policies and the importance of adhering to them.

Corrective Action: This approach allows for a constructive discussion, ensuring the employee understands the policy and the reasons behind it, which can prevent future violations.

Proportional Response: While dismissal or other punitive measures may seem excessive for a first-time or minor infraction, training provides a balanced approach to correction and improvement.

Reference: Human resource management best practices emphasize the importance of training and education in addressing policy violations, as discussed in resources like 'Human Resource Management' by Gary Dessler and guidelines from the Society for Human Resource Management (SHRM).


Contribute your Thoughts:

Caitlin
21 days ago
The capital expenditures budget is where the money really flows. Gotta make sure those investments pay off, am I right?
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Diego
23 days ago
Haha, I bet the exam writer is trying to trick us. Good thing I've been studying my finance textbook religiously!
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Luis
28 days ago
I agree with Ruth. Evaluating capital investments through payback and NPV is crucial for the capital expenditures budget.
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Ruth
30 days ago
Definitely option D. Capital expenditures budget requires a solid understanding of financial analysis techniques like payback and NPV.
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Shantell
2 months ago
I'm not sure about this one. Can someone explain why the other options don't require knowledge of payback and net present value?
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Bettyann
2 months ago
I agree with Lynette. Capital expenditures budget involves long-term investments that require understanding of payback and net present value.
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Lynette
2 months ago
I think the answer is D) Capital expenditures budget.
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