49) Jill Roberts owns a flower shop and employs 20 people. Jill lacks the time and knowledge to
efficiently handle HR tasks like payroll and benefits management. Which of the following would
be most appropriate for Jill in this situation?
A) filing with COBRA
B) finding an HMO
C) creating a PAQ
D) hiring a PEO
50) Which of the following is a characteristic of a PEO?
A) PEOs become co-employers of record for the firm’s employees.
B) PEOs usually work for firms with at least 100 employees.
C) Most PEOs charge 8% to 10% of a firm’s total payroll.
D) PEOs are legally limited to payroll tasks.
51) Which of the following is NOT one of the primary reasons that small businesses use PEOs?
A) managing overwhelming personnel-related paperwork
B) fulfilling personnel-related legal responsibilities
C) supporting the HR department temporarily
D) acquiring affordable insurance and benefits
52) A ________ can help a small business eliminate extensive HR-related paperwork, stay in
compliance with Title VII, OSHA, and pension plan rules, and attain low-cost insurance.
A) professional employer organization
B) human resource information system
C) management information system
D) transaction-processing system
53) David owns a small architecture firm with 75 employees. He wants to use a PEO to handle
his firm’s HR activities. David is in the process of investigating Assure Group, a PEO. Which of
the following best supports the argument that David should use Assure Group?
A) The Assure representative explains that the PEO has been in business for one year.
B) The Assure representative does not ask David about his company’s current HR policies.
C) The Assure representative promises David that his company will see substantial savings.
D) The Assure representative asks David many questions about his company’s safety policies.
54) David owns a small architecture firm with 75 employees. He wants to use a PEO to handle
his firm’s HR activities. David is in the process of investigating Assure Group, a PEO. Which of
the following undermines the argument that David should use Assure Group?
A) Assure lacks a clear credit history due to a recent corporate name change.
B) Assure’s Web site indicates that customers experience only modest savings.
C) Assure requires business owners to complete questionnaires about workplace safety.
D) Assure provides payroll, recruiting, and screening services to customers.
55) David owns a small architecture firm with 75 employees. He wants to use a PEO to handle
his firm’s HR activities. David is in the process of investigating Assure Group, a PEO. Which of
the following questions is LEAST relevant to David’s decision regarding whether or not to hire
Assure?
A) Will employee benefits be fully insured or partially self-funded by Assure?
B) What HR and legal expertise is available from the Assure staff?
C) What is the process that Assure uses to handle HR-related legal issues?
D) How does Assure effectively communicate HR needs with its employees?
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56) All of the following are recommended activities for small business managers who are in the
process of selecting a professional employer organization EXCEPT ________.
A) analyzing how the employee benefits are funded
B) checking the professional rating assigned to the PEO
C) assessing the PEO’s staff for experience and depth
D) asking how the PEO will provide its services
57) Beth recently opened an embroidery business and has four employees who work full-time for
her. Which of the following will Beth most likely use to manage her company’s human resources
tasks?
A) manual HR system
B) automated HR system
C) HR outsourcer system
D) HR scorecard system
58) Julie has a small accounting firm with only six employees, so she handles HR tasks
manually. Julie recently hired a new employee. Which of the following forms will Julie most
likely need on the worker’s first day of employment?
A) reference check form
B) employment agreement form
C) vacation request form
D) absence report form
59) All of the following tasks can be managed with most HR software programs EXCEPT
________.
A) payroll
B) attendance
C) outplacement
D) benefits management
60) Which of the following terms refers to the interrelated people, data, technology, and
organizational procedures a firm uses to collect, process, store, and disseminate information?
A) talent management system
B) information system
C) competency model
D) strategy map
61) A(n) ________ system provides a firm’s managers and accountants with detailed information
about short-term, daily activities, like accounts payables and order status.
A) transaction-processing
B) executive support
C) management information
D) employee assistance
62) A human resources information system helps managers make effective decisions by
________.
A) providing detailed information about tax liabilities
B) automatically updating employee records and data
C) regularly generating standardized, summarized reports
D) providing data about a firm’s customer orders and returns
63) ________ processing allows for employees to self-enroll in all their desired benefits program
over the Internet at a secured site.
A) Improved-Transaction
B) Improved Reporting
C) HR system integration
D) Online-Self
64) Which of the following terms refers to interrelated components working together to collect,
process, store, and disseminate information to support a firm’s human resource management
activities?
A) transaction-processing system
B) high-performance work system
C) human resource information system
D) electronic performance support system
65) All of the following are reasons that firms install human resource information systems
EXCEPT ________.
A) worker performance monitoring
B) online self-processing
C) transaction processing
D) system integration
66) Which of the following makes it possible for employees to self-enroll in a firm’s benefits
program through a secure Internet site?
A) executive support system
B) management information system
C) human resources information system
D) electronic performance support system
67) An HRIS increases the reporting capabilities of managers because an HRIS ________.
A) allows a firm to plan its HR activities
B) integrates separate HR tasks
C) processes a firm’s payroll
D) works on a firm’s intranet
68) All of the following are common functions of a firm’s human resource intranet EXCEPT
________.
A) providing electronic pay stubs
B) filing federal and state employment taxes
C) providing electronic employee handbooks
D) registering employees for training programs
69) Rob, the owner of A-Tech, a small software firm, plans to use the streamlined interview
process to interview candidates for a programming position at the company. Rob should first
________.
A) ask questions about significant areas in a candidate’s life
B) probe specific factors during the interview
C) devise a plan for the interview
D) prepare for the interview
70) Managers who prepare for an interview using the streamlined interview process should focus
on all of the following factors about a candidate EXCEPT ________.
A) personality
B) age and skills
C) work motivation
D) knowledge and experience
71) Approximately one-third of people working in the U.S. are employed by small firms.
72) In most cases, when a company has at least 100 employees, it can afford to hire an HR
specialist to handle recruiting, training, and compensating employees.
73) Human resource management activities, such as training, appraisals, and hiring, are typically
formal at small firms but informal at large firms.
74) Research indicates that entrepreneurs tend to crave control.
75) Without tools like Web-based recruiting and computerized testing, small businesses are at a
competitive disadvantage against large firms.
76) While most small firms are affected by the Fair Labor Standards Act and the Occupational
Safety and Health Act, only large firms need to be familiar with the Consumer Credit Protection
Act.
77) A small business employer who is unsure what to do when faced with a discrimination
charge would most likely find useful information on the EEOC Web site.
78) Since Internet job boards are limited to large firms, small business owners are forced to
recruit through local newspapers.
79) The Wonderlic Personnel Test measures personality traits and behaviors, while the
Predictive Index measures general mental ability.
80) Online employee testing and training programs are frequently used by small businesses
because such tools save both time and money.
81) In addition to offering employers courses in writing job descriptions and interviewing job
candidates, the Small Business Administration also offers free job postings for small business
owners looking for qualified applicants.