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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?

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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:

Shantell
6 days 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
9 days 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
12 days ago
I think the answer is D) Capital expenditures budget.
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