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
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
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
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
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
58) Health insurance, life insurance, pensions, and child care assistance are best categorized as
________.
A) compensation
B) incentives
C) benefits
D) rewards
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
60) Which of the following is a discretionary benefit?
A) unemployment insurance
B) disability insurance
C) FMLA leaves
D) Social Security
61) What is the primary cause of rising unemployment tax rates?
A) outsourced workers
B) unsafe workplaces
C) executive perquisites
D) economic recessions
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
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.
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
65) Which group contributes to workers’ compensation funds?
A) employers
B) state governments
C) federal government
D) insurance providers
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.
67) According to surveys, what will most employers do in response to the Patient Protection and
Affordable Care Act (Obamacare)?
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
68) Employers offer gig workers benefits.
69) Unemployment insurance laws do not require that everyone dismissed receive
unemployment benefits—only those dismissed through no fault of their own.
70) The Family and Medical Leave Act provides for leave, but it mandates only unpaid leave.
Therefore, several states have implemented their own paid family leave laws.
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.
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.
73) Women affected by pregnancy and childbirth are eligible for the same benefits as disabled
employees.
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.
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.
76) Disability insurance provides income protection for salary loss due to illness or accident.
77) Portability makes it easy for employees who leave one firm to work for another firm to take
their accumulated pension funds with them.
78) Why do employers provide severance pay to employees? What should firms consider when
designing a severance plan?
79) Employees frequently use sick leave to take care of family problems and personal issues.
How can firms address this costly problem?
80) Why is controlling workers’ compensation costs important? How can costs be controlled by
employers?
81) 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 works for the firm. This
pension plan could be classified as a ________.
A) non-contributory, defined contribution
B) contributory, defined benefit
C) non-contributory, defined benefit
D) contributory, qualified plan
82) 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 would be
classified as ________.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) contributory, defined contribution
D) contributory, defined benefit
83) Craig was born in 1961. According to the Social Security Act, what is Craig’s full retirement
age?
A) 62
B) 65
C) 67
D) 70
84) All of the following are Social Security benefits EXCEPT ________.
A) death benefits
B) disability payments
C) retirement benefits
D) defined contribution benefits
85) Portability makes it easier for employees who leave a firm prior to retirement to ________.
A) switch to defined contribution pension plans
B) take their pension funds with them
C) designate a new pension beneficiary
D) invest their pensions in 401(k) plans
86) A 401(k) plan is best described as a ________.
A) defined contribution pension plan
B) defined benefit pension plan
C) health savings account
D) golden parachute
87) What is the main problem associated with defined benefits plans?
A) lack of employer matching
B) lack of portability
C) highly regulated
D) highly taxed
88) Which of the following is considered a hybrid of defined benefit and defined contribution
plans?
A) ESOP
B) 401(k) plan
C) flexible savings
D) cash balance plan
89) Which term refers to the money that an employer and employee have placed in the
employee’s pension fund that cannot be forfeited for any reason?
A) thrift plans
B) vested funds
C) stock options
D) cash balance funds
90) With graded vesting, the period for acquiring a non-forfeitable right in employer matching
contributions is 3 years.
91) In a brief essay, describe the three classifications that apply to basic pension plans.
92) Why do some employers encourage early retirement? What are some potential problems
associated with early retirement programs? How can firms avoid such problems?
93) Which of the following provides services such as financial counseling, child care referrals,
and adoption assistance?
A) long-term pension plan
B) work-life benefit service
C) benefit management system
D) employee assistance program
94) The primary purpose of ________ is to enable employees to balance work and family
obligations.
A) automated benefits systems
B) work-life benefits
C) cafeteria plans
D) pooled paid leave banks
95) Furman, an automotive parts manufacturer, employs nearly 800 workers in its Dallas, Texas
facility. Furman has always offered its employees health and dental insurance as well as legally
required benefits such as unemployment insurance and workers’ compensation. Furman’s top
executives are considering the idea of offering employees a flexible benefits plan. Which of the
following, if TRUE, best supports the argument that Furman should offer employees a flexible
benefits plan?
A) Some Furman employees express interest in vision insurance, while other workers never
enroll for dental insurance.
B) Furman outsources its employee benefits program, and employees must file claims with the
plan’s administrator.
C) Some Furman employees prefer to build their work days around a core of midday hours rather
than work from 9 to 5.
D) Furman established a pooled paid leave bank to reduce the number of employee absences.
96) Kim works a 4-day workweek that consists of 10-hour days. Kim’s employer most likely
offers ________.
A) job sharing
B) flextime schedules
C) telecommuting options
D) compressed workweeks
97) To reduce unexpected absences, more employers are offering emergency child-care benefits,
for example, when a young child’s regular babysitter is a no-show.
98) When employers offer domestic partner benefits to employees, it means that employees’
same-sex domestic partners are eligible to receive the same benefits as do the husband, wife, or
legal dependent of one of the firm’s employees.
99) The firm for which Rob works offers employees counseling services, a credit union, and a
physical fitness facility, which are all considered personal service benefits.
100) Studies indicate that employee assistance programs help reduce absenteeism among
employees with family problems and illnesses.
101) Providing employees with iPhones, laptops, or other tools they need to get their jobs done
in any location is known as workplace flexibility.
102) Howard’s firm allows employees to assemble their own benefits packages from a variety of
benefits options, so Howard’s firm most likely offers a cafeteria plan.
103) Flexible benefits plans enable employees to spend their benefits allowances as they desire
and to opt out of certain benefits, such as disability and unemployment insurance.
104) Why are family-friendly benefits increasingly valuable to employees? What are some
examples of family-friendly benefits?
105) As a strategy to increase productivity, employee engagement, and better customer service,
organizations are paying higher than competitors’ wages.