46) Which of the following information should be obtained in the application/interview process?
A) Education and training
B) Work history
C) Social Security number
D) All of these
47) Which of the following terms means a set amount of compensation for a given time period?
A) Paycheck
B) Hourly wage
C) Salary
D) Commission
48) When a small business owner pays an individual a percentage of sales, this is called a
________.
A) paycheck
B) bonus
C) commission
D) salary
49) Which of the following statements is true of the commission compensation system?
A) It creates an overall healthy environment within a firm when the salespeople are very focused
on their commission.
B) It creates a uniform system in a firm where every employee is paid the same amount as
commission, and it is independent of their performance.
C) It creates a rigid compensation system where abuse is minimal, and it removes the frustration
for employees and the entrepreneur.
D) It creates frustration when a firm either does or does not change a commission program to
reflect the growth of the firm.
50) When a small business owner pays a commission in addition to a basic salary, it is called
________.
A) a bonus
B) profit sharing
C) a salary
D) hybrid compensation
51) A firm sets up a low level of salary but offers to share a percentage of its profits at the end of
the year. What is this called?
A) Bonus
B) Profit sharing
C) Salary
D) Bonus plus
52) Identify an accurate statement about the hybrid compensation system.
A) An entrepreneur should not differentiate the level of rewards among his employees and should
maintain a well-defined structure.
B) An entrepreneur should provide bonuses in a timely manner that is relevant to the individuals in
the firm and within the realities and constraints of the business.
C) An entrepreneur needs to visualize a quarter as a relevant time frame, whereas workers need to
visualize weekly feedback on their performance through a bonus.
D) An entrepreneur need not consider the industry standards in developing a compensation
system.
53) Which of the following laws established a minimum wage for workers?
A) The Fair Labor Standards Act
B) The Civil Rights Act
C) The Americans with Disabilities Act
D) The Sherman’s Antitrust Act
54) Which of the following laws states an employer cannot discriminate in pay to men and women
who do the same job?
A) The Americans with Disabilities Act
B) The Civil Rights Act
C) The Equal Pay Act
D) The Fair Labor Standards
55) Which of the following statements is true of the Fair Labor Standards Act (FLSA)?
A) It requires that all nonexempt employees who work over 40 hours a week should be paid at the
rate of time and a half.
B) It includes all workers, including workers on small farms and administrative employees.
C) It provides that each and every business must provide unfettered access to all disabled people.
D) It allows an entrepreneur to employee children under the age of 15 years if he or she can
establish the safety of the working environment.
56) A(n) ________ is an index wage that requires the minimum wage to be at least what someone
who works 40 hours a week needs to stay out of poverty.
A) wage ratio
B) living wage
C) wage ceiling
D) efficiency wage
57) The government regulates the employment of children under the age of ________.
A) 16
B) 18
C) 20
D) 21
58) An example of a benefit a company can offer is
A) 401(k)
B) retirement plans.
C) sick leave.
D) all of these.
59) A program that allows employees to contribute to their retirement on a tax-free basis is
________.
A) 401(k)
B) 401(C)
C) 401(F)
D) 401(T)
60) Currently under the ________, firms with more than 50 employees are required to offer their
employees insurance.
A) Americans with Disabilities Act
B) Equal Pay Act
C) Fair Labor Standards Act (FLSA)
D) Affordable Care Act
61) Which of the following statements is true of a performance review in an entrepreneurial
business?
A) A new firm should wait for a year to give feedback, and newer generations of employees are
looking for such feedback.
B) A complex form should be followed for all performance reviews that are given in writing to
assure its validity.
C) The formal conversation with a worker who is doing a good job and appreciating his or her
work is a form of compensation.
D) If a worker is not performing as expected, then the employer should give only positive feedback
to boost the worker’s morale.
62) A(n) ________ is needed regarding all employees, and the owner must be diligent in the
attempt to assist a poorly performing employee.
A) paper trail
B) performance review
C) audit profile
D) firing document
63) An employee cannot sue a small business owner for injury, if the individual accepts
________.
A) unemployment compensation
B) workers’ compensation
C) social security
D) employment compensation
64) What percentage of states has an unemployment compensation law?
A) 25
B) 50
C) 75
D) 100
65) The Americans with Disabilities Act regulates firms with how many employees?
A) 20 or more employees
B) 15 or more employees
C) Less than 20 employees
D) Less than 15 employees
66) Which of the following statements is true of the Americans with Disabilities Act (ADA)?
A) It covers those firms with 50 or more employees.
B) It provides that each and every business must provide unfettered access to all differently abled
people.
C) It is applicable to large business firms with a turnover of more than 10 million dollars.
D) It allows entrepreneurial businesses to exclude candidates who need physical adaptations to
work at the firm.
67) According to the book, which of the following firms needs to pay special attention to OSHA
guidelines?
A) Manufacturing firms
B) IT firms
C) Family business forms
D) None of these
68) Identify a legal question that an employer can ask during an interview.
A) “Are you married?”
B) “Are you heterosexual or homosexual?”
C) “Do you have a Social Security number?”
D) “Are you a Republican or a Democrat?”
69) According to the workers’ compensation requirements, what are the conditions under which
employees are compensated for their injuries?
A) The employee is injured from an unsafe workplace where he/she is working.
B) The employee has physical injuries due to unsafe working condition.
C) The injury is caused due to the employer’s negligence and fault.
D) All of these
70) What does OSHA stand for?
A) Occupational Safety and Help Administration
B) Occupational Safeguard and Health Administration
C) Occupational Safety and Health Administration
D) Occupational Shelter and Help Administration
71) Which of the following statements is true of a family business?
A) It is generally run by and for the benefit of a particular family.
B) It gives no importance for human resource management in the business.
C) It seldom takes rational decisions for the benefit of the business.
D) It eliminates issues of discrimination if the firm is large.
72) ________ theory states that all individuals judge how we are treated relative to how we see
others being treated.
73) Mike sells $10,000.00 worth of product; the owner gives him $2,000.00. This is called a(n)
________.
74) A(n) ________ is a pay system where there is a salary with commission.
75) A(n) ________ is the review by an entrepreneurial business owner of an employee’s goals and
outcomes on those goals over some given period.
76) In a family business, the founder needs to choose a(n) ________ and prepare that person to
take over the business.
77) List the elements that should be on a job description.
78) List some of the ways to advertise a job and to attract a large pool of applicants.
79) List the elements on a job application.
80) List and describe the four types of basic compensation.
81) List five benefits and explain the problems associated with them.
82) What are some problems a human resource manager has in a family business?