62) In a brief essay, discuss some of the reasons why companies chose to offer employee
benefits.
63) In a short essay, describe the reasons the U.S. government established particular legally
required benefits.
64) What is a consumer-driven health care plan? How are health savings accounts (HSA)
combined with it?
65) Which law set the criteria for distinguishing between qualified and nonqualified plans?
A) Social Security Act
B) Employee Retirement Income Security Act
C) Pension Protection Act
D) Retirement Parity Act
66) Retirement plans that qualify for preferential tax treatment are referred to as ________.
A) tax exempt plans
B) qualified plans
C) tax efficient plans
D) nonqualified plans
67) Which type of plan balances the risk an employee takes while saving for retirement?
A) defined benefit plan
B) cash balance plan
C) pension equity plan
D) defined contribution plan
68) What type of retirement plan provides the participant with a fixed benefit upon retirement?
A) defined contribution
B) deferred contribution
C) defined benefit
D) deferred balance
69) Leroy has a formal retirement plan based on his final years’ average salary and years of
service at Royce Pharmaceuticals. Which type of plan does Leroy most likely have?
A) defined contribution
B) defined benefit
C) cash balance
D) 401(k)
70) Maura’s retirement plan requires her employer to make specific contributions to a retirement
fund established for Maura. Which type of plan does Maura most likely have?
A) defined contribution plan
B) deferred contribution plan
C) defined benefit plan
D) deferred salary plan
71) A defined contribution plan in which employees may defer income up to a maximum amount
allowed is a ________.
A) stock option plan
B) cash balance plan
C) hybrid plan
D) 401(k) plan
72) What type of retirement plan has elements of both defined benefit plans and defined
contribution plans?
A) 401(k) plan
B) 403(b) plan
C) benefit plan
D) cash balance plan
73) ________ provides protection to employees’ beneficiaries only during a limited period.
A) Term life insurance
B) Universal life insurance
C) Whole life insurance
D) Social Security survivor’s insurance
74) What type of insurance is a benefit commonly provided to protect an employee’s family in
the event of the employee’s death?
A) long-term care
B) utilization care
C) group life insurance
D) disability insurance
75) Workers in which of the following countries take the fewest number of vacation days?
A) Italy
B) Brazil
C) Canada
D) United States
76) In most firms, vacation time varies by ________.
A) performance appraisal results
B) organizational rank
C) education level
D) personal needs
77) Which term refers to a certain number of days each year that employees can use for any
purpose?
A) sabbatical
B) paid vacation
C) paid time off banks
D) medical leave
78) Carson Enterprises is considering the idea of replacing personal leave and vacation time with
paid time off. Which of the following best supports this decision?
A) Employees at Carson express satisfaction with the firm’s current PPO.
B) Last minute absences are a significant problem among Carson employees.
C) Retirement plans held by Carson employees suffered during the recession.
D) Carson employees are given the opportunity to telecommute when needed.
79) Which term refers to temporary leaves of absence from an organization, usually at reduced
pay?
A) personal leave
B) medical leave
C) paid time off
D) sabbatical
80) Carson Enterprises is considering the idea of adding sabbaticals to its discretionary benefits
plan. Which of the following best supports this decision?
A) Numerous employees at Carson have elderly parents who need medical attention.
B) The health and safety record at Carson has been problematic in recent years.
C) Many experienced employees at Carson have quit because of burnout.
D) The majority of Carson employees have small children in daycare.
81) A results-only work environment allows employees to ________.
A) take a specified number of days off each year for any purpose
B) work whenever and wherever they wish, as long as they complete projects on time
C) take temporary leaves of absence from work, usually at reduced pay
D) take time off to volunteer for worthy causes in their communities
82) Which of the following is NOT a typical paid time off benefit?
A) leave to seek employment elsewhere
B) bereavement leave
C) rest breaks
D) military leave
83) Curt has been offered a position with Premium Processing. As part of its benefits package,
the firm offers child care, educational assistance, and relocation benefits. Which term best
describes the benefits offered by Premium Processing?
A) voluntary benefits
B) cash balance plans
C) employee services
D) disability protection
84) Michael works as an engineer in Arizona, but he has been offered a better position with
RayCo, a firm in Minnesota. RayCo will ship the family’s belongings to Minnesota and will
provide Michael and his family with temporary housing for three months. Which of the
following best describes the type of compensation offered by RayCo?
A) flexible spending
B) relocation benefits
C) voluntary benefits
D) premium pay
85) Which term refers to company-paid shipments of household goods and temporary living
expenses?
A) unemployment compensation
B) relocation benefits
C) premium payments
D) disability benefits
86) Which law gives employees the opportunity to temporarily continue their health insurance
coverage if they are terminated from their job?
A) Health Insurance Portability and Accountability Act
B) Consolidated Omnibus Budget Reconciliation Act
C) Americans with Disabilities Act
D) Rehabilitation Act
87) Which law provides protection for workers who are self-employed or move from one job to
another?
A) Health Insurance Portability and Accountability Act
B) Consolidated Omnibus Budget Reconciliation Act
C) Americans with Disabilities Act
D) Rehabilitation Act
88) Anne, who has a preexisting medical condition, recently changed jobs. Which legislation was
passed to protect individuals such as Anne?
A) Patient Protection and Affordable Care Act
B) Family and Medical Leave Act
C) Health Insurance Portability and Accountability Act
D) Consolidated Omnibus Budget Reconciliation Act
89) The primary reason for enacting ERISA was to ________.
A) force insurance companies to accept workers with preexisting medical conditions
B) extend long-term health care coverage to unemployed individuals
C) require employers to create employee retirement plans
D) strengthen current and future retirement programs
90) The intent of which Act is to ensure that when employees retire, they receive deserved
pensions?
A) Health Insurance Portability and Accountability Act
B) Consolidated Omnibus Budget Reconciliation Act
C) Older Workers Benefit Protection Act
D) Employee Retirement Income Security Act
91) Which Act is a 1990 amendment to the Age Discrimination in Employment Act?
A) Health Insurance Portability and Accountability Act
B) Consolidated Omnibus Budget Reconciliation Act
C) Older Workers Benefit Protection Act
D) Employee Retirement Income Security Act
92) Which of the following employers must comply with the Family and Medical Leave Act?
A) Rand Automotive, 24 employees
B) Compton Electronics, 47 employees
C) McKnight Publishing, 82 employees
D) all of the above
93) Which Act provides employees up to 12 weeks a year of unpaid leave in specified situations?
A) Social Security Act
B) Family and Medical Leave Act
C) Fair Labor Standards Act
D) Patient Protection and Affordable Care Act
94) Which Act contains a variety of provisions designed to strengthen the funding rules for
defined benefit pension plans?
A) Older Workers Benefit Protection Act
B) Civil Rights Act of 1964
C) Pension Protection Act
D) Rehabilitation Act
95) All of the following are true about the Patient Protection and Affordable Care Act of 2010
EXCEPT that ________.
A) individuals cannot be denied health insurance because of a preexisting condition
B) insurance companies cannot cancel a policy if the insured becomes sick
C) individuals who do not purchase health insurance will be fined
D) children over 21 cannot remain on their parents’ policy
96) The Family and Medical Leave Act applies to private employers with 25 or more employees
and to all governmental employers regardless of number.
97) COBRA gives employees the opportunity to temporarily continue their health insurance
coverage after a termination or layoff.
98) The Health Insurance Portability and Accountability Act includes a regulation designed to
protect the privacy of personal health information.
99) The Employee Retirement Income Security Act requires employers to create and fund
employee retirement plans and sets vesting standards.
100) Company child-care arrangements have been linked to reduced absenteeism and enhanced
retention and recruiting.