Free GMS Practice Questions

Question 1

A manufacturer is sending a process engineer to establish a production line abroad for 28 months. The engineer will then return to a role in the home salary structure. The approved compensation objective is to preserve comparable home-country purchasing power while recognizing the different costs of the assignment. Which package design most directly meets that objective?

Accepted Answer

Home-based pay adjusted for tax, housing and living-cost differences.

Answer

Host-market salary with continued participation in the home retirement plan.

Answer

Home gross salary converted once and then fixed in the host currency.

Answer

Host-market salary supplemented by temporary schooling and relocation benefits.

Question 2

A host-country team repeatedly raises objections the day after joint project meetings. The project leader attributes this to reluctance to challenge authority publicly. Headquarters staff help develop proposals several days before each meeting, but host-country participants first see them during the call. What would most clearly distinguish a preparation problem from that cultural explanation?

Accepted Answer

Give both teams equal preparation time, without changing the meeting format.

Answer

Have an intercultural facilitator observe a meeting before changing preparation.

Answer

Ask the host manager to collect a single team response after each meeting.

Answer

Require each participant to state agreement or disagreement before the chair closes an issue.

Question 3

A U.S. recruiter offers a job to an assignee's spouse, who holds valid L-2S status. The recruiter then says a separate Employment Authorization Document (EAD) is required because the new employer is unrelated to the assignee's company. Which correction is accurate?

Accepted Answer

The spouse is employment-authorized through valid L-2S status; a separate EAD is optional.

Answer

A separate employment card is necessary when the spouse's employer differs from the L-1 sponsor.

Answer

The spouse needs employer-sponsored status for the unrelated employer.

Answer

The principal assignee's company must sponsor the spouse's employment before the offer can proceed.

Question 4

A core-flex policy provides company-managed immigration and tax services, plus a flexible allowance that assignees may allocate among eligible family-support benefits. An employee without children chooses partner career counseling and language tuition, both eligible and within the allowance. A manager requests exception approval because colleagues usually spend that money on schooling. How should mobility handle this request?

Accepted Answer

Approve it as an eligible use of the flexible allowance.

Answer

Reserve the customary schooling share until this assignment ends.

Answer

Send it to the exception committee because the spending pattern differs from other assignees.

Answer

Standardize the benefit mix for employees at the same grade.

Question 5

A technical specialist spends 63 days commissioning equipment at the employer's foreign branch, with no other host-country presence in the relevant treaty period. The specialist is treaty-resident only in the home state, and the employer is not host-resident. Salary remains on home payroll, but the branch, which is a host permanent establishment, bears all of the salary cost. The applicable treaty uses the OECD Model Article 15(2) ordinary-employment exemption. Which assessment is correct?

Accepted Answer

The exemption fails because the employer's host PE bears the remuneration.

Answer

The exemption fails because performing any work in the host state prevents it.

Answer

The exemption applies because salary is paid through the home payroll.

Answer

The exemption applies because the visit is below the presence limit.

Question 6

After a gas leak, emergency responders evacuate an assignee's apartment block and clear the family to leave the assembly point. The mobility duty officer has approved transport ready to take them to designated safe accommodation. The emergency protocol gives that officer authority to release it without a purchase order. The usual finance approver is unavailable. What is the appropriate next action?

Accepted Answer

Confirm all family members are accounted for, then release the approved vehicle.

Answer

Arrange alternative transport using personal funds, then submit the cost for reimbursement.

Answer

Escalate the missing purchase order before committing to the transport vendor.

Answer

Obtain insurer approval before releasing transport so that responsibility for its cost is established.

Question 7

Home and host HR issue assignment documents with different return dates. Each team has approved the sections within its remit, and mobility has recorded both approvals. Nobody is responsible for checking that the final documents describe the same arrangement. Which change closes the main control gap?

Accepted Answer

Give one authorized owner responsibility for reconciling the final terms and approving release.

Answer

Have each HR team certify its own sections again before mobility records the approvals.

Answer

Require the host office's document to take precedence whenever home and host wording differs.

Answer

Distribute both approved versions to the employee and request acknowledgment before arranging travel.

Question 8

The requested move is a three-year expatriate finance-director assignment. A review finds a narrower problem: the subsidiary's existing finance manager knows local reporting requirements but needs hands-on support with the group's consolidation system over the next three closes. The business wants that manager to retain reporting authority and close independently afterward. Which recommendation follows from these findings?

Accepted Answer

Assign a consolidation specialist for three closes to develop the manager's system proficiency.

Answer

Approve the three-year expatriate role, with the finance manager retaining local sign-off authority.

Answer

Transfer consolidation permanently to headquarters, leaving statutory reporting with the local manager.

Answer

Recruit a second local finance manager and make group-system proficiency a longer-term development goal.

Question 9

An approved relocation package promises a $9,600 net settling-in allowance and reimbursement of $4,000 in eligible moving costs. The tax team confirms that the reimbursement is nontaxable. A uniform 25% tax applies to the allowance and to the employer's payment of that tax. No other taxes, charges or deductions apply. How much total employer funding is required for the two employee payments and the associated tax?

Accepted Answer

$16,800.00

Answer

$13,600.00

Answer

$16,000.00

Answer

$18,133.33

Question 10

A selection panel uses a Hofstede country profile showing higher uncertainty avoidance in the destination than at headquarters. It proposes giving applicants from the destination country a higher 'needs close supervision' rating. Which revision would make the panel's use of the information most defensible?

Accepted Answer

Use the profile for cultural preparation and assess candidates using individual job-related evidence.

Answer

Assign the country score less weight than technical performance in each candidate's selection rating.

Answer

Apply the score only to candidates born and educated in the destination country.

Answer

Use the country score only to break ties between candidates with equivalent interview results.

Free GMS Practice Questions

Domain 1: Corporate Mobility

Question 1

Domain 2: Culture And Diversity

Question 2

Question 3

Domain 3: Global Compensation

Question 4

Question 5

Domain 4: Global Immigration

Question 6

Domain 5: Global Mobility Management

Question 7

Domain 6: Global Mobility Policies

Question 8

Domain 7: Global Tax

Question 9

Domain 8: Global Teams

Question 10

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