53) Keith works as a construction foreman, and he is viewed as a reliable, competent employee.
Keith was recently injured in a car accident while on vacation, and his injuries are so severe that
he will not be able to return to work. Which of the following would most likely provide Keith
with benefits?
A) supplemental unemployment benefits
B) workers’ compensation insurance
C) unemployment insurance
D) group life insurance
AACSB: Application of knowledge
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Application
54) Eric has worked full-time for a large manufacturing company for over 3 years. Eric and his
wife have recently adopted a baby, and Eric wants to take time off from work to care for the
child. Which of the following laws most likely applies to Eric’s situation?
A) Pregnancy Discrimination Act
B) Family and Medical Leave Act
C) Title VII of the Civil Rights Act
D) Newborn Mother’s Protection Act
AACSB: Application of knowledge
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Application
21
55) Elizabeth works at an auto firm, which recently shut down for five weeks to change
machinery. However, during the shutdown, Elizabeth was able to maintain her standard of living
because of the firm’s ________.
A) supplemental unemployment benefits
B) workers’ compensation insurance
C) supplemental health benefits
D) disability insurance
AACSB: Application of knowledge
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Application
56) ________ are groups of health care providers that contract with employers, insurance
companies, or third-party payers to provide medical care services at a reduced fee.
A) PPOs
B) HMOs
C) DMOs
D) Hospitals
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
22
57) According to the Comprehensive Omnibus Budget Reconciliation Act, how long are most
employers required to make health benefits available to terminated or retired employees?
A) 6 months
B) 12 months
C) 18 months
D) 24 months
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
58) Health insurance, life insurance, pensions, and child care assistance are best categorized as
________.
A) compensation
B) incentives
C) benefits
D) rewards
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
59) An employer’s unemployment tax rate depends on the employer’s ________.
A) total payroll costs
B) policy on retirements
C) supplemental pay benefits
D) rate of employee terminations
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
23
60) Which of the following is a discretionary benefit?
A) unemployment insurance
B) disability insurance
C) FMLA leaves
D) Social Security
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
61) What is the primary cause of rising unemployment tax rates?
A) outsourced workers
B) unsafe workplaces
C) executive perquisites
D) economic recessions
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
62) A manager can best control the cost of unemployment insurance by ________.
A) eliminating supplemental pay benefits for part-time employees
B) documenting the poor performance of dismissed employees
C) establishing a pooled paid leave plan for workers
D) investigating all workers’ compensation claims
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
24
63) Which of the following is NOT a true statement about the Family and Medical Leave Act?
A) The law applies to all public and private employers regardless of size.
B) Eligible employees have worked for the employer for at least one year.
C) Leave may be taken for personal illness or the birth of a child.
D) Eligible employees must be granted up to 12 weeks of leave.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
64) Athena, a sales representative, was terminated from her position at Ross Manufacturing. On
Athena’s last day of work, she was given a check for $5,000. What did Athena most likely
receive from Ross Manufacturing?
A) disability pay
B) annual bonus
C) severance pay
D) unemployment insurance
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
65) Which group contributes to workers’ compensation funds?
A) employers
B) state governments
C) federal government
D) insurance providers
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
25
66) Which condition must be met for an injured employee to receive workers’ compensation
benefits?
A) The injury occurred during an overtime or nighttime shift.
B) The employee was wearing adequate protection.
C) The injury was not the fault of the employee.
D) The employee was injured while on the job.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
67) According to surveys, what will most employers do in response to the Patient Protection and
Affordable Care Act?
A) decrease the time allowed for family leave
B) decrease workers’ compensation benefits
C) increase employee contributions for dependents
D) increase sponsorships of retiree medical coverage
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
68) Employee benefits account for about over one-half of wages and salaries.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
26
69) Legally required benefits, such as unemployment insurance, are more costly to employers
than health insurance.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
70) Supplemental pay benefits provide employees with time off with pay for jury duty, vacations,
funerals, and military responsibilities.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
71) Pooled paid leave plans combine sick leave, vacation, and personal days into a single leave
pool and have been blamed for increasing employee absenteeism.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
72) If an employee is injured at work due to a blatant disregard for company safety policies, the
company is not required to pay workers’ compensation.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
27
73) Women affected by pregnancy and childbirth are eligible for the same benefits as disabled
employees.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
74) The American Disabilities Act makes it illegal for employers to discriminate against women
by providing benefits of a lower amount or duration for pregnancy, childbirth, or related medical
conditions.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
75) The Comprehensive Omnibus Budget Reconciliation Act requires the government to provide
health insurance to terminated or retired employees and their families through the Medicare
system.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
28
76) A primary benefit of 401(k) plans is that payments made by employees into the plan are pre-
tax, so the employee pays no tax on those dollars until after he or she retires or withdraws the
money.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
77) Portability makes it easy for employees who leave one firm to work for another firm to take
their accumulated pension funds with them.
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Concept
78) Why do employers provide severance pay to employees? What should firms consider when
designing a severance plan?
AACSB: Application of knowledge
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Application
29
79) Employees frequently use sick leave to take care of family problems and personal issues.
How can firms address this costly problem?
AACSB: Application of knowledge
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Application
80) Why is controlling workers’ compensation costs important? How can costs be controlled by
employers?
AACSB: Reflective thinking
Chapter: 11
LO: 11.4: List and discuss the main pay for time not worked and insurance benefits.
Skill: Critical Thinking
30