An employee has a regular hourly rate equal to $12. According to FLSA, how much
should her/his employer pay this employee for each additional hour worked beyond the
regular 40 hours within a period of 7 consecutive days?
A) $12
B) $14
C) $16
D) $18
Under a cliff vesting arrangement, after how many years must full vesting rights be
granted?
A) 1
B) 3
C) 5
D) 7
With which profit sharing formula does the profit sharing pool become funded only
after profits exceed a predetermined level, but fall below some established maximum
level?
A) fixed first-dollar-of-profits
B) profitability threshold
C) graduated first-dollar-of-profit
D) equal payments
Compared to the FICA rate, the SECA tax rate is which of the following amounts?
A) half as much
B) equal
C) three times as much
D) twice as much
Starting January 1, 2004, eligible individuals are allowed to establish HSAs under
which law?
A) Health Maintenance Organization Act
B) Mental Health Parity Act
C) Medicare Prescription Drug, Improvement and Modernization Act
D) HIPAA
What does it mean when the distribution of data is skewed to the right?
A) a lower frequency of larger values and the median is greater than the mean
B) a higher frequency of larger values and the median is greater than the mean
C) a lower frequency of larger values and the mean is greater than the median
D) a higher frequency of larger values and the mean is greater than the median
Which of the following is the term used when a company offers stock to its employees?
A) stock allocation
B) stock option
C) stock grant
D) stock disposition
Which of the following Asian countries has the highest average pay rate?
A) Vietnam
B) China
C) Indonesia
D) Bangladesh
Who determines the particular objectives in a management by objectives (MBO)
appraisal system?
A) employees
B) supervisors
C) both employees and supervisors
D) board of directors
This term suggests that a loss is likely for the firm, and that the individual will be left
with little control.
A) reverse opportunity
B) negative equity
C) threat
D) foreclosure
Which of the following teams consists of a group of people who are assembled to
complete a one-time assignment?
A) project teams
B) innovation teams
C) process teams
D) work teams
What is another name for health maintenance organizations (HMOs)?
A) outpatient medical services
B) prepaid medical services
C) inpatient medical services
D) on-call medical services
XYZ Inc. pursues a low-cost strategy in its industry and generally needs lower skilled
employees. As a result, their management team decided to establish a compensation
policy that pays less than the marketplace. In recent years, the company became
susceptible to labor shortages and high turnover. Which kind of pay level policy does
XYZ Inc. follow?
A) market match
B) market lag
C) market lead
D) market pay line
Which type of plans provide an executive with ownership stakes in the company
through a variety of mechanisms, including stock option plans and stock purchase
plans?
A) equality plans
B) equity plans
C) golden parachutes
D) profit sharing plans
Which of the following refers to the sale of stock by the stockholder?
A) stock option
B) stock grant
C) disposition
D) exercise of one’s grant
A human resource manager of a company decides to change the current job-content
valuation technique by using a quantitative methodology. He thinks that the old
approach fails to balance internal and external considerations while evaluating jobs.
Which type of job evaluation technique do you suggest for this HR manager?
A) job-content evaluation
B) market-based evaluation
C) point method
D) simple ranking plan
What do the indexes of living costs abroad enable expatriates to do?
A) The indexes are between-location cost comparisons at future times and currency
exchange rates.
B) The indexes are place-to-place cost comparisons at future times and currency
exchange rates.
C) The indexes are between-location cost comparisons at specific times and currency
exchange rates.
D) The indexes are place-to-place cost comparisons at specific times and currency
exchange rates.
What was the main effect created by the revisions to the ADA regulations passed in
2008?
A) Costs will be contained much more than in the past.
B) There are more hurdles for individuals seeking protection under the ADA to pass
through in order to weed out false claims.
C) It is now easier for an individual seeking protection under the ADA to establish a
disability within the meaning of the ADA.
D) Companies may no longer perform job analyses to see if they comply with the
Americans with Disabilities Act.
To have better safety records, the XYZ Company gives monetary incentive awards to its
workers for lower accident rates due to improper use of heavy equipment. Which of the
following incentive plans describes this example?
A) management incentive
B) referral
C) piecework
D) behavioral encouragement
Which of the following laws permit employers to automatically enroll employees in a
defined contribution plan?
A) Consolidated Omnibus Reconciliation Act
B) Employee Retirement Income Security Act
C) Pension Protection Act
D) Internal Revenue Code
In the regression analysis formula, what does the X represent?
A) predicted salary
B) job evaluation points
C) the slope
D) the Y intercept
Compensation surveys are typically focused on which two factors?
A) competitors’ promotion and advancement opportunities
B) internal promotion and advancement opportunities
C) competitors’ wage and salary practices
D) internal wage and salary practices
These rights provide employees with an opportunity to purchase stock shares at a
designated price or whenever the stock price increases, usually, within a specified
period of time.
A) stock option
B) stock grant
C) disposition
D) exercise of one’s grant
In statistical analysis, which of the following is used to signify extreme observations?
A) deviations
B) extremities
C) outliers
D) variants
When a telecommuting employee works from a remote extension from the employer’s
office that includes a clerical staff and a full-time manager, that employee is said to be
working at what type of office?
A) remote work office
B) nomadic work center
C) neighborhood work center
D) satellite work center
Since the costs of benefits has risen so dramatically in recent years, the majority of the
companies decided to finance discretionary benefits using which of the following
methods?
A) noncontributory financing
B) contributory financing
C) employee-financed benefits
D) employer-financed benefits
What employment issue for flexible employees does the Walling v. A.H. Belo
Corporation Supreme Court ruling address?
A) retirement benefits
B) overtime pay
C) employee benefits
D) fixed weekly pay
Which of the following theories suggests that an employee must regard his own ratio of
merit increase pay to performance as similar to the ratio for other comparably
performing people in the company?
A) comparable ratio theory
B) comparable pay theory
C) equality theory
D) equity theory
XYZ Pharmaceuticals recently announced that the clinical trials for a cancer drug failed
to cure the illness. This announcement led to a dramatic decrease in the stock value of
the company. The company hired a new CEO two years ago when the clinical trials for
this drug had already initiated. Which one of the following is true about the
compensation of the CEO of XYZ Pharmaceuticals?
A) The CEO should receive lower compensation since shareholder returns have been
declining.
B) The CEO was not involved in the decision of the failed initiative; therefore he/she
should not receive lower compensation.
C) Each company handles this situation differently.
D) The compensation of this CEO depends only on pretax profit margins.
Sarah works at a federal government agency. Her pay rate is determined by her GS
level and work seniority. Which type of job-content evaluation approach was used to
categorize her job?
A) alternation ranking
B) simple ranking plans
C) paired comparison
D) classification plans
________ systems evaluate a given employee’s performance against the performance of
other employees.
Elaborate on the link between a company’s pay level policy and its strategic mandate.
The country with the lowest GDP per capita reviewed in Chapter 14 is ________.
Shareholders’ interests are represented by a ________, who weigh the pros and cons of
top executives’ decisions.
________ pay compensates employees for the work they currently perform.
Describe the concept of competencies.
The ________ is the most commonly used method for tracking cost changes throughout
the United States.
Apple Computer’s use of a differentiation strategy promotes both ________ and
________.
A ________ stock plan is an arrangement whereby executives receive a bonus that is
equivalent to either the value of company shares or the increase in that value over time.
A ________ model specifies and defines all the knowledge and skills necessary for
success in a group of jobs that are set within an industry context.
The ________ is the U.S. tax code.