13 Jan When he became CEO, Duane

Final exam

Question 1 (1 point) Question 1 Und

Which term is used to describe the situation where the pay spread between newly hired employees and more qualified job incumbents is small?

Question 1 options:

Pay structures

Red circle pay rates

Pay compression

Green circle pay rates

Question 2 (1 point) Question 2 Und

In March 2011, U.S. companies spent approximately how much per employee for discretionary benefits?

Question 2 options:

$3,050

$15,000

$1,200

$28,995

Question 3 (1 point) Question 3 Und

How are compa-ratios calculated?

Question 3 options:

Dividing the green circle rates mid-point by the normal pay range

Dividing an employee’s pay rate by the pay range midpoint

Dividing the employee’s pay rate by the market line rate

Dividing the red circle rates by the normal pay range

Question 4 (1 point) Question 4 Und

This type of commission draw acts as a salary because employees are not obligated to repay the loans if they do not sell enough to cover the amount.

Question 4 options:

Graduated draw

Nonrecurring draw

Nonrecoverable draw

Safe draw

Question 5 (1 point) Question 5 Und

Which of the following are the three measures of dispersion?

Question 5 options:

Percentile standard, deviation, arithmetic mean

Arithmetic mean, percentile, quartile

Standard deviation, quartile, percentile

Quartile, arithmetic mean, standard deviation

Question 6 (1 point) Question 6 Und

This federal Act requires contractors with federal contracts worth over $2,000 to pay wages at least equal to those prevailing in the area where the work is being done.

Question 6 options:

Davis-Bacon Act

Fair Labor Standards Act

Civil Rights Act of 1964

Equal Pay Act

Question 7 (1 point) Question 7 Und

This term refers to a group of two or more jobs that are based on similar work characteristics, duties, and responsibilities.

Question 7 options:

Market pay line

Benchmark jobs

Quartiles

Occupational classification

Question 8 (1 point) Question 8 Und

Market lag policies are generally set to which quartile in the salary survey?

Question 8 options:

2nd

4th

1st

3rd

Question 9 (1 point) Question 9 Und

This is a loan from the company to the employee that is carried forward indefinitely until the employee sells enough to repay it.

Question 9 options:

An interest-free loan

A non-recoverable draw

A recoverable draw

Commission-plus-draw plan

Question 10 (1 point) Question 10 Und

The Consumer Price Index represents the average price changes for the price of goods and services in how many regions?

Question 10 options:

8

6

4

2

Question 11 (1 point) Question 11 Und

Which BLS survey covers the incidence and detailed provisions of selected benefit plans, with the data being presented as a percentage of employees who have access to the benefit plans?

Question 11 options:

Employer Costs for Employee Compensation

National Compensation Survey

National Benefit Index

Employment Cost Index

Question 12 (1 point) Question 12 Und

If the company adopts a market lag policy, how will that company’s pay range midpoint compare to the market average?

Question 12 options:

The midpoint will be lower than the market average.

There is not enough information to determine the answer.

The midpoint will be the same as the market average.

The midpoint will be higher than the market average.

Question 13 (1 point) Question 13 Und

When these are used to develop pay grade widths, the grades are based on a set number of job evaluation points for each grade that increases as an employee moves up the pay structure.

Question 13 options:

Pay rate spreads

Absolute job evaluation points spreads

Percentage-based job evaluation point spreads

Pay range spreads

Question 14 (1 point) Question 14 Und

Market match policies are generally set to which quartile in the salary survey?

Question 14 options:

1st

3rd

4th

2nd

Question 15 (1 point) Question 15 Und

This term refers to the groupings of jobs based on compensable factors, for the purpose of applying pay policies.

Question 15 options:

Pay grades

Market-competitive pay structures

Pay ranges

Market lines

Question 16 (1 point) Question 16 Und

These are tools used by employers to determine the pay levels needed to recruit highly qualified employees.

Question 16 options:

External market surveys

Compensation surveys

Strategic surveys

Internal market surveys

Question 17 (1 point) Question 17 Und

This type of pay rate applies to an employee who is demoted but is paid more than the maximum rate for the pay grade he is now in.

Question 17 options:

Green circle

Multi-tier pay

Red circle

Graduated pay

Question 18 (1 point) Question 18 Und

What does it mean when the distribution of data is skewed to the right?

Question 18 options:

There is a lower frequency of larger values and the median is greater than the mean.

There is a higher frequency of larger values and the median is greater than the mean.

There is a lower frequency of larger values and the mean is greater than the median.

There is a higher frequency of larger values and the mean is greater than the median

Question 19 (1 point) Question 19 Und

This theory 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.

Question 19 options:

Comparable ratio theory

Equality theory

Comparable pay theory

Equity theory

Question 20 (1 point) Question 20 Und

Jose Escobar conducts a survey of salaries at UB2 Enterprises and finds that 50% of the workers fall below the market pay average of $32,000. In which quartile do the workers at ERL Enterprises fall?

Question 20 options:

Fourth

First

Third

Second

Question 21 (1 point) Question 21 Und

Discretionary benefits are generally divided into which three categories?

Question 21 options:

Intellectual enhancements, health benefits, and services

Health benefits, intellectual enhancements, and paid time-off

Services, paid time-off, and protection programs

Pension benefits, protection programs, and health benefits

Question 22 (1 point) Question 22 Und

What specifies the rate at which participants accumulate benefits?

Question 22 options:

Combination procedures

Sarbanes-Oxley

Build-up rules

Accrual rules

Question 23 (1 point) Question 23 Und

Which type of contingent worker tends to have specialized skills that are in relatively limited supply in the labor market?

Question 23 options:

Temporary employees

Leased employees

Part-time employees

Independent contractors

Question 24 (1 point) Question 24 Und

Marty’s employer has a prescription drug plan that will only make him pay 20% of cost of his prescription, if he goes only to certain pharmacies. What type of prescription drug plan does he have?

Question 24 options:

Mail order prescription drug plan

Prescription reimbursement plan

Medical reimbursement plan

Prescription card program

Question 25 (1 point) Question 25 Und

Which of the following is associated with 401(k) plans?

Question 25 options:

Employees cannot deduct their contributions from taxable income.

Employees pay taxes on their contribution.

Investment gains are taxed.

Employees do not pay taxes on their contributions.

Question 26 (1 point) Question 26 Und

What is the term used when a company offers stock to its employees?

Question 26 options:

Stock grant

Stock allocation

Stock disposition

Stock option

Question 27 (1 point) Question 27 Und

Who has the authority to define a “year of service” for pension protection purposes?

Question 27 options:

The U.S. Department of Labor

The union

The human resources department

The chief executive officer

Question 28 (1 point) Question 28 Und

How many hours (including all paid time for performing work and paid time off) will Jamal have to work to complete a “year of service”?

Question 28 options:

100

270

100

185

Question 29 (1 point) Question 29 Und

A short-term incentive plan would most likely be used for which company employee?

Question 29 options:

A new employee in training

The company’s CEO

A mid-level manager

A sanitation worker

Question 30 (1 point) Question 30 Und

What is the only state that requires employee contributions under the Federal Unemployment Tax Act (FUTA)?

Question 30 options:

Michigan

Alaska

Florida

California

Question 31 (1 point) Question 31 Und

To be fully insured under OASDI, Simone would have to work at least how long?

Question 31 options:

5 years

10 years

12 months

24 months

Question 32 (1 point) Question 32 Und

This type of consumer driven health care program allows employees to carry-over the unused funds still in their account.

Question 32 options:

Health reimbursement account

Health savings account

Flexible spending account

Flexible savings account

Question 33 (1 point) Question 33 Und

The approximate annual cost of employee assistance programs (EAPs) is usually no more than how much?

Question 33 options:

$60

$10

$200

$100

Question 34 (1 point) Question 34 Und

Which type of contingent worker would work for a company on a long-term basis, presumably on an indefinite basis?

Question 34 options:

Temporary employees

Leased employees

Part-time employees

Independent contractors

Question 35 (1 point) Question 35 Und

What is the only state where employers are not required to fund workers’ compensation programs?

Question 35 options:

Texas

New York

Michigan

Oregon

Question 36 (1 point) Question 36 Und

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?

Question 36 options:

Neighborhood work center

Remote work office

Nomadic work center

Satellite work center

Question 37 (1 point) Question 37 Und

The safe harbor rule requires that the contingent worker be covered by whose

pension plan?

Question 37 options:

The leasing company

The client company

The employee is responsible for his or her own pension

Depends on the contractual arrangement between the leasing company and the employer

Question 38 (1 point) Question 38 Und

In which state would an employee be eligible for an additional 13 weeks of emergency unemployment insurance (for a total of 33 weeks) under the Unemployment Compensation Act of 2008 due to excessively high state unemployment?

Question 38 options:

Montana

Alabama

Michigan

North Dakota

Question 39 (1 point) Question 39 Und

How many days must temporary and seasonal employees work to meet ERISA requirements to participate in a company’s qualified retirement plan?

Question 39 options:

200

100

125

250

Question 40 (1 point) Question 40 Und

Outplacement assistance programs are best suited for which condition?

Question 40 options:

Workforce increases

Global operations

New plant openings

Mergers and acquisitions

Question 41 (1 point) Question 41 Und

To be covered by FLSA overtime and minimum wage provisions, seasonal employees must work for a company that is open how many months in a year?

Question 41 options:

4

12

11

7

Question 42 (1 point) Question 42 Und

Most contingent workers were employed as what, in 2005?

Question 42 options:

Temporary employees

Independent contractors

On-call employees

Leased employees

Question 43 (1 point) Question 43 Und

As of March 2011, discretionary benefits accounted for as much as what percentage of an employer’s total payroll costs?

Question 43 options:

50%

60%

75%

30%

Question 44 (1 point) Question 44 Und

A worker considered part-time is working less than how many hours in a week?

Question 44 options:

25

39

35

30

Question 45 (1 point) Question 45 Und

This term refers to the percentage of the health bill the insured employee is required to pay.

Question 45 options:

Coinsurance

Co-admission

Co-payment

Co-premiums

Question 46 (1 point) Question 46 Und

Which of the following would be considered an act as part of a company’s wellness program?

Question 46 options:

Offering anti-smoking courses

Giving out cigars to expecting fathers

Putting a soda machine in the break room

Giving employees free pizza at lunch

Question 47 (1 point) Question 47 Und

Julio wants to apply for unemployment benefits, how much will he have to have earned, in the last four quarters, to qualify?

Question 47 options:

$1,000 total

$10,000 total

$100 total

$5,000 total

Question 48 (1 point) Question 48 Und

MomPop’s General Store can avoid paying workers’ compensation taxes if it keeps its staff to less than how many employees?

Question 48 options:

25

50

12

100

Question 49 (1 point) Question 49 Und

The IRS uses the term “highly compensated employees” for what purpose?

Question 49 options:

Fo determine the necessity of top-heavy provisions in health insurance plans

For non-discrimination rules in employer-sponsored health insurance benefits

To determine the necessity of top-heavy provisions in qualified retirement plans

For non-discrimination rules in employer-sponsored retirement benefits

Question 50 (1 point) Question 50 Und

As of 2011, how much would you have to earn to qualify for one quarter of credit for OASDI coverage?

Question 50 options:

$920 a month

$1,090 a year

$625 a month

$625 a year

Question 51 (1 point) Question 51 Und

According to the safe harbor rules, leased employees can make-up no more than what percentage of your company’s total workforce?

Question 51 options:

20%

10%

25%

33%

Question 52 (1 point) Question 52 Und

Which type of contingent worker is most likely to be involved in a job sharing

arrangement?

Question 52 options:

Part-time employees

Temporary employees

Independent contractors

Leased employees

Question 53 (1 point) Question 53 Und

This is the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option.

Question 53 options:

Fair market value

Capital gains

Discounted value

Disposition value

Question 54 (1 point) Question 54 Und

Which executive bonus amount varies with the extent to which a pre-established minimum performance level is met?

Question 54 options:

Target plan

Discretionary

Performance-contingent

Predetermined allocation

Question 55 (1 point) Question 55 Und

In the end, Yolanda beat Tristen and Michel in a series of competitions among top-level managers to become CEO of National LemGlass. Which compensation theory did the company probably use?

Question 55 options:

Competition

Comparison

Agency

Tournament

Question 56 (1 point) Question 56 Und

This type of executive bonus is based on a bonus pool that is determined by a fixed-formula that is not determined by the executive’s performance.

Question 56 options:

Predetermined allocation

Target plan

Performance-contingent

Discretionary

Question 57 (1 point) Question 57 Und

A golden parachute clause can be triggered by which of the following?

Question 57 options:

Retirement

Disability

Corporate takeover

Resignation

Question 58 (1 point) Question 58 Und

The SEC requires compensation information on the CEO and how many of the highest paid executives?

Question 58 options:

2

7

10

4

Question 59 (1 point) Question 59 Und

When he became CEO, Duane was given a stock option that does not require him to exercise his options in order to receive income. Which plan is it?

Question 59 options:

Golden parachute

Stock appreciation rights

Restricted stock

Discount stock

Question 60 (1 point) Question 60 Und

The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures, Inc., which means she has at least one of which of the following qualifications in the preceding year?

Question 60 options:

1% owner in the top paid employee group

Made over $75,000

Made over $50,000

5% owner in the top paid employee group

Question 61 (45 points) Question 61 Und

What are hardship allowances? What are their features? How does the U.S. Department of State determine the value of these allowances? Your response should be 200-250 words in length.

Who are the key players in setting executive compensation? Detail their different roles. Your response should be 200-250 words in length.