Final Exam
Question 1
Which BLS survey covers the incidence and detailed
provisions of selected benefit plans, with the data being presented as a
percentage of employees who have access to the benefit plans?
Employer Costs for Employee Compensation
National Compensation Survey
National Benefit Index
Employment Cost Index
Question 2
This federal Act requires contractors with federal contracts
worth over $2,000 to pay wages at least equal to those prevailing in the area
where the work is being done.
Davis-Bacon Act
Fair Labor Standards Act
Civil Rights Act of 1964
Equal Pay Act
Question 3
If the company adopts a market lag policy, how will that
company’s pay range midpoint compare to the market average?
The midpoint will be the same as the market average.
The midpoint will be lower than the market average.
The midpoint will be higher than the market average.
There is not enough information to determine the answer.
Question 4
With which type of sales commission plan does an employee
earn a higher rate of commission for all sales made in a given period if the
sales level exceeds a predetermined level?
Commission-plus-draw plan
Graduated commission
Multiple-tiered commission
Straight commission
Question 5
This theory suggests that an employee must regard his own
ratio of merit increase pay to performance as similar to the ratio for other
comparably performing people in the company.
Equality theory
Equity theory
Comparable pay theory
Comparable ratio theory
Question 6
Midpoint, minimum, and maximum are values used to define
which of the following?
Pay ranges
Pay structures
Pay grades
Pay levels
Question 7
What types of companies are most likely to utilize two-tier
wage systems?
Sales firms
Private sector companies
Public sector companies
Unionized firms
Question 8
In establishing pay grades, which pay rate is established
first?
Third quartile
Maximum pay rate
Minimum pay rate
Midpoint
Question 9
In statistical analysis, this term is used to signify the
possible extreme observations.
Variants
Deviations
Extremities
Outliers
Question 10
This term is defined as an in-depth examination of the
external and internal environmental factors that are likely to have the
greatest impact on the future of the company.
Competitive strategy
Strategic analysis
Market-competitive pay structure
Regression analysis
Question 11
What are below-minimum pay range rates referred to as?
Green circle rates
Red circle rates
Pay compression
Market lag rates
Question 12
Market lag policies are generally set to which quartile in
the salary survey?
2nd
3rd
1st
4th
Question 13
Which of the following are the three measures of dispersion?
Percentile standard, deviation, arithmetic mean
Arithmetic mean, percentile, quartile
Standard deviation, quartile, percentile
Quartile, arithmetic mean, standard deviation
Question 14
Which sales incentive plan awards sales professionals with
subsistence pay, yet provides them with a strong incentive to excel?
Commission-only plan
Salary (base pay. -plus-bonus plan
Commission-plus-draw plan
Salary (base pay. -plus-commission plan
Question 15
Which scenario would be appropriate for using a salary-only
plan?
The salesperson is selling high-priced products with long
lead times.
The company is looking to create competition among its sales
staff.
The salesperson has substantial influence over sales.
The company is looking to save money due to budget constraints.
Question 16
Companies pursuing a differentiation strategy are most
likely to use which pay level policy?
Market lead
Market match
Market lag
Market average
Question 17
What represents the relationship between a company’s
valuation of jobs based on job evaluation and the valuation of jobs within the
external market, as assessed by compensation surveys?
Pay range
Market-competitive pay structure
Pay grade
Market pay line
Question 18
How does an employee’s pay rate compare when the compa-ratio
is more than one?
The employee’s rate is above the competitive pay rate.
The employee’s rate is the same as the competitive pay rate.
The employee’s rate is half as much as the competitive pay
rate.
The employee’s rate is below the competitive pay rate.
Question 19
In which situation is a commission-only plan best suited?
The sales cycle is long.
Extensive training or expertise is required.
The salesperson has little influence over the sales.
The company is following a lowest-cost strategy.
Question 20
These represent the horizontal dimension of pay structures.
Pay spreads
Pay grades
Job evaluation points
Pay ranges
Subsection
Question 21
Starting January 1, 2004, eligible individuals are allowed
to establish HASs under which law?
Mental Health Parity Act
Health Maintenance Organization Act
HIPAA
Medicare Prescription Drug, Improvement and Modernization
Act
Question 22
Which of the following is an example of a welfare practice?
Workers’ compensation laws
Employee recreational areas
Overtime pay
Regular wages
Question 23
A short-term incentive plan would most likely be used for
which company employee?
A mid-level manager
A new employee in training
The company’s CEO
A sanitation worker
Question 24
Discretionary benefits are generally divided into which
three categories?
Services, paid time-off, and protection programs
Intellectual enhancements, health benefits, and services
Pension benefits, protection programs, and health benefits
Health benefits, intellectual enhancements, and paid
time-off
Question 25
Who has the authority to define a “year of
service” for pension protection purposes?
The union
The chief executive officer
The U.S. Department of Labor
The human resources department
Question 26
What specifies the rate at which participants accumulate
benefits?
Sarbanes-Oxley
Combination procedures
Build-up rules
Accrual rules
Question 27
Which type of contingent worker tends to have specialized
skills that are in relatively limited supply in the labor market?
Temporary employees
Leased employees
Independent contractors
Part-time employees
Question 28
This type of sales incentive compensation plan offers the
sales person a salary and further compensation if they meet a specific,
exceptional sales goal.
Salary-plus-commission
Salary-plus-bonus
Salary-plus graduated commission
Salary-plus-draw
Question 29
Which of the following is a feature of short-term disability
plans?
Waiting period
Partial disabilities inclusion
Preexisting conditions
Inclusion provisions
Subsection
Question 30
In a company wanted to hire contingent workers as a way to
screen workers for possible full-time employment, which type of worker would
the company likely employ?
Temporary
Consultants
Freelance
Leased
Question 31
This Medicare Plan was established with the passage of the
Balanced Budget Act of 1997 as an alternative to the original program (parts A
& B).
Medicare Prescription Drug Program
Medicare Advantage
Medigap
Medicare Select
Question 32
MomPop’s General Store can avoid paying workers’
compensation taxes if it keeps its staff to less than how many employees?
12
25
50
100
Question 33
The IRS uses the term “highly compensated
employees” for what purpose?
To determine the necessity of top-heavy provisions in
qualified retirement plans
For non-discrimination rules in employer-sponsored health
insurance benefits
For non-discrimination rules in employer-sponsored
retirement benefits
Fo determine the necessity of top-heavy provisions in health
insurance plans
Question 34
According to the safe harbor rules, leased employees can
make-up no more than what percentage of your company’s total workforce?
20%
10%
33%
25%
Question 35
Under the Family and Medical Leave Act, for Pierre to take
time off to take care of his wife and new child how many hours would he have
had to work in the previous 12 months?
1,250
1,000
1,600
800
Question 36
Chuck broke his leg at work and was told he needed to get
physical rehabilitation. How long, after the incident, does he have to file a
claim?
3 – 6 months
1 – 3 months
2 – 5 years
6 – 24 months
Question 37
To be fully insured under OASDI, Simone would have to work
at least how long?
5 years
12 months
24 months
10 years
Question 38
What is the economic reality test used to check for?
The solvency of employment agencies
The financial dependence of independent contractors
The financial background of new hires
How close an employee is to being able to retire comfortably
Question 39
Which of the following would be considered an act as part of
a company’s wellness program?
Putting a soda machine in the break room
Giving employees free pizza at lunch
Offering anti-smoking courses
Giving out cigars to expecting fathers
Question 40
Julio wants to apply for unemployment benefits, how much
will he have to have earned, in the last four quarters, to qualify?
$100 total
$1,000 total
$5,000 total
$10,000 total
Question 41
To be covered by FLSA overtime and minimum wage provisions,
seasonal employees must work for a company that is open how many months in a
year?
11
4
7
12
Question 42
You broke your neck at work. The company called to inform
you that they had to switch your benefits from the short-term disability
account to the long-term account. That means you’ve probably been off work
around how long?
12 months
1 month
6 months
18 months
Question 43
Which of these is NOT covered under workers’ compensation?
Death
Occupational disease
Injury
Chronic unemployment
Question 44
A new employee comes into your office and ask you how many
hours a year he has to work to qualify as a year towards his vesting
requirements. What would you tell him?
1,200
800
1,400
1,000
Question 45
What is it called when Tanesha and Jaunita both work
part-time to complete the duties of one full-time position?
Safe harboring
Dual staffing
Freelancing
Job sharing
Question 46
Employer sponsored disability plans supplement legally
required benefits established by which law?
COBRA
NLRA
OASDI
ERISA
Question 47
Which type of contingent worker is most likely to be
involved in a job sharing
arrangement?
Part-time employees
Leased employees
Temporary employees
Independent contractors
Question 48
In which state would an employee be eligible for an
additional 13 weeks of emergency unemployment insurance (for a total of 33
weeks) under the Unemployment Compensation Act of 2008 due to excessively high
state unemployment?
Alabama
Michigan
North Dakota
Montana
Question 49
Most contingent workers were employed as what, in 2005?
Independent contractors
Leased employees
Temporary employees
On-call employees
Question 50
This type of telecommuting involves executives who travel
extensively and maintain control over projects through the use of telephones,
faxes, and e-mail.
Nomadic executive office
Satellite work center
Electronic remote work center
Neighborhood work center
Question 51
This type of consumer driven health care program allows
employees to carry-over the unused funds still in their account.
Flexible savings account
Health savings account
Flexible spending account
Health reimbursement account
Question 52
Which type of contingent worker would work for a company on
a long-term basis, presumably on an indefinite basis?
Independent contractors
Leased employees
Temporary employees
Part-time employees
Subsection
Question 53
The SEC’s Summary Compensation Table contains data covering
how many years?
7
3
5
10
Question 54
The SEC requires compensation information on the CEO and how
many of the highest paid executives?
4
2
7
10
Question 55
Under SEC rules, which of the following is true?
Publicly held corporations must disclose executive
compensation information to shareholders, but not the public.
Shareholders may be subject to personal liability for paying
excessive executive compensation.
Board of director members can sue a corporation for
excessive executive compensation.
Board of director members may be subject to personal
liability for paying excessive executive compensation.
Question 56
Restricted stock generally allows the executives ownership
of the stock after how many years?
3-5
5-10
1-3
20-30
Question 57
If the CEO of a new company asked you how much per employee
she will be taxed by FUTA, what would you tell her?
6.2% of the first $7,000
6.2% of the first $10,000
3.5% of the first $10,000
3.5% of the first $7,000
Question 58
This type of executive bonus is based on a bonus pool that
is determined by a fixed-formula that is not determined by the executive’s
performance.
Target plan
Performance-contingent
Discretionary
Predetermined allocation
Question 59
When he became CEO, Duane was given a stock option that does
not require him to exercise his options in order to receive income. Which plan
is it?
Restricted stock
Golden parachute
Stock appreciation rights
Discount stock
Question 60
This stock option allows executives to be awarded stocks at
discounted prices, but requires that they pay the taxes on the discounted
amount at the time of the stock grant.
Discount
Statutory
Restricted
Nonstatutory
Question 61
What are hardship allowances? What are their features? How
does the U.S. Department of State determine the value of these allowances? Your
response should be 200-250 words in length.
Question 62
Discuss four types of bonuses common in executive
compensation. Your response should be 200-250 words in length.
