Objective: Chapter objective 4
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80) The full retirement age according to Social Security for individuals born in
1960 or later is ________.
A) 62
B) 65
C) 67
D) 70
Objective: Chapter objective 4
81) Social Security provides all of the following benefits except:
A) income if retirement is at age 62 or later and individual is insured under the
Social Security Act.
B) death benefits to surviving dependents for those insured under the Social
Security Act
C) Medicare.
D) income if retirement is at age 55 or later.
Objective: Chapter objective 4
82) When an employer makes all of the contributions to the pension plan, the
pension plan is classified as ________.
A) qualified
B) non-qualified
C) defined contribution
D) non-contributory
Objective: Chapter objective 4
83) Malcolm is interviewing for a new job and he is evaluating the quality of the
pension plans offered for each company he is considering. One company offers a
pension plan in which the company will make all contributions to the plan and
will base his pension benefit on a formula linked to his pay at the time of
retirement and the number of years he was with the firm. This pension plan could
be classified as ________.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) non-contributory, defined contribution
D) contributory, qualified
Skill: AACSB: Analytical Skills
Objective: Chapter objective 4
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84) Jenny’s pension plan encourages her to contribute at least 5% of her annual
salary in addition to the set amount that her company contributes. She is given
choices regarding how the money is invested. When she retires, the amount she
has available will depend on how much she invested herself, and the rate of return
on the investments she chose. This pension plan could be classified as ________.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) contributory, defined contribution
D) contributory, defined benefit
Skill: AACSB: Analytical Skills
Objective: Chapter objective 4
85) A defined contribution pension plan encourages employees to contribute a
portion of their earnings to the fund with an employer contribution that is matched
to that of the employee in whole or part is called a(n) ________.
A) savings and thrift plan
B) matching plan
C) deferred profit-sharing plan
D) employee stock ownership plan
Objective: Chapter objective 4
86) ________ provide services like personal legal and financial counseling, child
care referrals, elder care referrals adoption assistance, mental health counseling,
and life event planning.
A) Social Security programs
B) Pension plans
C) Employee Assistance Programs
D) Family-friendly benefits
Objective: Chapter objective 4
87) ________ seek to enable employees to better meet the demands of their
family and work lives.
A) Sick leave
B) Family-friendly benefits
C) Pay plans
D) Benefit management systems
Objective: Chapter objective 4
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88) ESOP is an incentive plan that ________.
A) uses a trust to hold stock in individual employee accounts and distributes it to
employees upon retirement
B) engages many or all employees in a common effort to achieve a company’s
productivity objectives with any resulting cost-savings gains shared among
employees and the company
C) contributes company shares of its own stock or cash to be used to purchase
company stock to a trust established to purchase shares of the firm’s stock for
employees
D) provides tax advantages for employees by deferring income taxes, often until
the employee retires
Objective: Chapter objective 3
89) An employee stock ownership plan is an incentive plan that ________.
A) engages many or all employees in a common effort to achieve a company’s
productivity objectives with any resulting cost-savings gains shared among
employees and the company
B) focuses on the sharing of benefits between employer and employees
C) contributes company shares of its own stock or cash to be used to purchase
company stock to a trust established to purchase shares of the firm’s stock for
employees
D) involves the firm distributing total annual profits each year among employees
based on their merit rating
Objective: Chapter objective 3
90) Plans that put some portion of the employee’s weekly pay at risk to encourage
goal attainment are called ________ pay plans.
A) at-risk variable
B) Rucker
C) Improshare
D) Scanlon
Objective: Chapter objective 3
91) Financial benefits like employer-paid insurance and vacations are not a part of
employee compensation.
Objective: Chapter objective 1
92) Historically, the main issue in collective bargaining is wage rates.
Objective: Chapter objective 1
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93) Indirect payments that contribute to an employee’s compensation include
variable pay, such as commissions and bonuses.
Objective: Chapter objective 1
94) When employees work more than 40 hours per week, employers must pay
overtime at a rate of at least one and a half times the normal pay for any hours
worked over 40 in a workweek.
Objective: Chapter objective 1
95) Because the minimum wage is set by the Fair Labor Standards Act, all states
adhere to that wage.
Objective: Chapter objective 1
96) The Equal Pay Act states that employees of one sex may not be paid wages at
a rate lower than that paid to employees of the opposite sex for doing roughly
equivalent work.
Objective: Chapter objective 1
97) While laws exist to protect against discrimination in compensation based on
gender and age, no law protects against such discrimination against persons with
disabilities.
Skill: AACSB: Multicultural and Diversity
Objective: Chapter objective 1
98) The provision of the Family and Medical Leave Act that entitles employees to
take up to 12 weeks of unpaid, job-protected leave for the birth of a child only
applies to women.
Skill: AACSB: Multicultural and Diversity
Objective: Chapter objective 4
99) Some employers may misclassify employees as independent contractors to
reduce the taxes they must pay.
Objective: Chapter objective 1
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