Question 1

Independent contractors always earn less than their permanently employed counterparts.

Accepted Answer

A) True 
 B)False

Question 2

The _____ component of executive compensation has grown the most since 2012.

Accepted Answer

A)  long-term incentives 
B)  bonus 
C)  short-term incentives 
D)  base salary 
A)  long-term incentives 
B)  bonus 
C)  short-term incentives 
D)  base salary

Question 3

With easily sold products:

Accepted Answer

A)  companies prefer a more aggressive sales force. 
B)  the base compensation tends to be more important. 
C)  the incentives provided in the form of commissions tend to be more important. 
D)  companies tend to set lower sales targets. 
A)  companies prefer a more aggressive sales force. 
B)  the base compensation tends to be more important. 
C)  the incentives provided in the form of commissions tend to be more important. 
D)  companies tend to set lower sales targets.

Question 4

Which of the following is NOT one of the clauses relating to the benefits employers can provide executives?

Accepted Answer

A)  Benefit plans must cover 80 percent of employees. 
B)  Benefit plans must be determinable. 
C)  Benefit plans must meet specific vesting requirements. 
D)  Average value of benefits for low-paid employees must be at least 90 percent of that for highly paid employees. 
A)  Benefit plans must cover 80 percent of employees. 
B)  Benefit plans must be determinable. 
C)  Benefit plans must meet specific vesting requirements. 
D)  Average value of benefits for low-paid employees must be at least 90 percent of that for highly paid employees.

Question 5

Compensation committees of boards of directors typically set executive salaries.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT a reason for companies to hire contingent workers?

Accepted Answer

A)  Contingent workers help save costs. 
B)  Employees who accept the idea of bounded careers view contingent status as part of a fast-track developmental sequence. 
C)  Such employment offers added flexibility to employers. 
D)  Companies hire contingent workers as a way to insulate themselves in a volatile economy. 
A)  Contingent workers help save costs. 
B)  Employees who accept the idea of bounded careers view contingent status as part of a fast-track developmental sequence. 
C)  Such employment offers added flexibility to employers. 
D)  Companies hire contingent workers as a way to insulate themselves in a volatile economy.

Question 7

When designing a sales compensation plan,it should be kept in mind that:

Accepted Answer

A)  salespeople rank recognition as their number-one motivator. 
B)  salespeople under an incentive system will view customer service as an imposition. 
C)  compensation systems are independent of the nature of a product or service. 
D)  commissions for sales volume reduces the incentive to sell. 
A)  salespeople rank recognition as their number-one motivator. 
B)  salespeople under an incentive system will view customer service as an imposition. 
C)  compensation systems are independent of the nature of a product or service. 
D)  commissions for sales volume reduces the incentive to sell.

Question 8

Incentive stock options may be deducted as a company expense.

Accepted Answer

A) True 
 B)False

Question 9

A(n)_____ awards cash or stock if specific goals are achieved.

Accepted Answer

A)  nonqualified stock option 
B)  incentive stock option 
C)  restricted stock plan 
D)  performance share plan 
A)  nonqualified stock option 
B)  incentive stock option 
C)  restricted stock plan 
D)  performance share plan

Question 10

The most recent trend in executive compensation is an increased use of stock options.

Accepted Answer

A) True 
 B)False

Question 11

List the basic components of most executive compensation packages.

Accepted Answer

There are five basic elements of most ex

Question 12

The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees.

Accepted Answer

A)  economic approach 
B)  team production 
C)  social comparison 
D)  agency 
A)  economic approach 
B)  team production 
C)  social comparison 
D)  agency

Question 13

All of the following EXCEPT _____ would be considered a special compensation group.

Accepted Answer

A)  sales staff 
B)  contingent workers 
C)  unpaid interns 
D)  professional employees 
A)  sales staff 
B)  contingent workers 
C)  unpaid interns 
D)  professional employees

Question 14

Engineers in almost all companies are treated as special compensation cases due to their education and training.

Accepted Answer

A) True 
 B)False

Question 15

Leah,the CEO of SteadyResults Corp. ,feels that she is underpaid,so she hires a compensation consultant to survey actual competitors of the company.According to agency theory,if SteadyResults performs poorly,her salary will most likely:

Accepted Answer

A)  remain the same as CEO salary is based only on performance. 
B)  be withheld and paid at a later date as the company is doing poorly. 
C)  be increased in order to retain her. 
D)  remain the same as the company is doing poorly. 
A)  remain the same as CEO salary is based only on performance. 
B)  be withheld and paid at a later date as the company is doing poorly. 
C)  be increased in order to retain her. 
D)  remain the same as the company is doing poorly.

Question 16

What is a tally sheet and what is it used for?

Accepted Answer

Recently,companies have begun to capture

Question 17

Which of the following is NOT a reason for the recent decline in the use of stock options in executive pay?

Accepted Answer

A)  There has been a growing pressure to expense stock options in annual reports. 
B)  In a falling market,stock options are underwater-the market price is below the exercise price. 
C)  Financial Accounting Standard Number 313 raises the cost of using stock options. 
D)  Stock options do not pay for executive performance. 
A)  There has been a growing pressure to expense stock options in annual reports. 
B)  In a falling market,stock options are underwater-the market price is below the exercise price. 
C)  Financial Accounting Standard Number 313 raises the cost of using stock options. 
D)  Stock options do not pay for executive performance.

Question 18

Which of the following is the most popular executive perk offered by most companies?

Accepted Answer

A)  Executive physicals 
B)  Payment of club dues 
C)  Family spousal travel 
D)  Corporate housing 
A)  Executive physicals 
B)  Payment of club dues 
C)  Family spousal travel 
D)  Corporate housing

Question 19

_____ curve expresses the relationship between years since last degree,performance,and salary.

Accepted Answer

A)  The Phillips 
B)  The marginal productivity 
C)  A tenure 
D)  A maturity 
A)  The Phillips 
B)  The marginal productivity 
C)  A tenure 
D)  A maturity

Question 20

NaxWell Corp.sells a smart wristband that,apart from monitoring heart rate and blood pressure,also reminds users to stand and walk every half hour.As part of its promotional efforts,a celebrity starts wearing the wristband,thereby increasing its popularity and ease of sale.Which of the following is most likely to happen?

Accepted Answer

A)  NaxWell will set lower sales targets for its employees. 
B)  NaxWell is likely to increase base salaries and decrease incentives. 
C)  NaxWell is likely to lower its executive compensation in order to increase stock price. 
D)  NaxWell will hire only contingent workers. 
A)  NaxWell will set lower sales targets for its employees. 
B)  NaxWell is likely to increase base salaries and decrease incentives. 
C)  NaxWell is likely to lower its executive compensation in order to increase stock price. 
D)  NaxWell will hire only contingent workers.

Independent contractors always earn less than their permanently employed counterparts.

The _____ component of executive compensation has grown the most since 2012.

With easily sold products:

Which of the following is NOT one of the clauses relating to the benefits employers can provide executives?

Compensation committees of boards of directors typically set executive salaries.

Which of the following is NOT a reason for companies to hire contingent workers?

When designing a sales compensation plan,it should be kept in mind that:

Incentive stock options may be deducted as a company expense.

A(n)_____ awards cash or stock if specific goals are achieved.

The most recent trend in executive compensation is an increased use of stock options.

List the basic components of most executive compensation packages.

The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees.

All of the following EXCEPT _____ would be considered a special compensation group.

Engineers in almost all companies are treated as special compensation cases due to their education and training.

Leah,the CEO of SteadyResults Corp. ,feels that she is underpaid,so she hires a compensation consultant to survey actual competitors of the company.According to agency theory,if SteadyResults performs poorly,her salary will most likely:

What is a tally sheet and what is it used for?

Which of the following is NOT a reason for the recent decline in the use of stock options in executive pay?

Which of the following is the most popular executive perk offered by most companies?

_____ curve expresses the relationship between years since last degree,performance,and salary.

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 14: Compensation of Special Groups

Independent contractors always earn less than their permanently employed counterparts.

The _____ component of executive compensation has grown the most since 2012.

With easily sold products:

Which of the following is NOT one of the clauses relating to the benefits employers can provide executives?

Compensation committees of boards of directors typically set executive salaries.

Which of the following is NOT a reason for companies to hire contingent workers?

When designing a sales compensation plan,it should be kept in mind that:

Incentive stock options may be deducted as a company expense.

A(n)_____ awards cash or stock if specific goals are achieved.

The most recent trend in executive compensation is an increased use of stock options.

List the basic components of most executive compensation packages.

The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees.

All of the following EXCEPT _____ would be considered a special compensation group.

Engineers in almost all companies are treated as special compensation cases due to their education and training.

Leah,the CEO of SteadyResults Corp. ,feels that she is underpaid,so she hires a compensation consultant to survey actual competitors of the company.According to agency theory,if SteadyResults performs poorly,her salary will most likely:

What is a tally sheet and what is it used for?

Which of the following is NOT a reason for the recent decline in the use of stock options in executive pay?

Which of the following is the most popular executive perk offered by most companies?

_____ curve expresses the relationship between years since last degree,performance,and salary.

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, Mix, and Pay

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Benefit Options

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters