Question 1

Nonqualified stock options require _____.

Accepted Answer

A) purchase of stock at a stipulated price, not conforming with the Internal Revenue Code 
B) cash or stock award to be determined by an increase in stock price at a fixed future date 
C) cash or stock award to be determined by an increase in stock price during any time chosen in the option period 
D) grant of stock at a reduced price with the condition that it may not be sold before a specified date 
A) purchase of stock at a stipulated price, not conforming with the Internal Revenue Code 
B) cash or stock award to be determined by an increase in stock price at a fixed future date 
C) cash or stock award to be determined by an increase in stock price during any time chosen in the option period 
D) grant of stock at a reduced price with the condition that it may not be sold before a specified date

Question 2

Popular stereotypes of salespeople characterize them as being heavily motivated by _____.

Accepted Answer

A) financial compensation 
B) personal growth and job security 
C) recognition and appreciation 
D) promotional opportunities 
A) financial compensation 
B) personal growth and job security 
C) recognition and appreciation 
D) promotional opportunities

Question 3

List the basic components of most executive compensation packages.

Accepted Answer

There are five basic elements of most ex

Question 4

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 5

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 6

Compensation committees of boards of directors typically set executive salaries.

Accepted Answer

A) True 
 B)False

Question 7

Working through a temporary-help agency usually means:

Accepted Answer

A) high recognition for the work done. 
B) lower work stress in comparison to permanent employees. 
C) higher benefits in comparison to permanent employees. 
D) low pay in administrative or day labor positions. 
A) high recognition for the work done. 
B) lower work stress in comparison to permanent employees. 
C) higher benefits in comparison to permanent employees. 
D) low pay in administrative or day labor positions.

Question 8

Independent contractors always earn less than their permanently employed counterparts.

Accepted Answer

A) True 
 B)False

Question 9

Members of boards of directors are not categorized as candidates for special compensation.

Accepted Answer

A) True 
 B)False

Question 10

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 11

A(n) _____ awards cash or stock that is determined by an increase in stock price at a fixed future date.

Accepted Answer

A) phantom stock plan 
B) incentive stock option 
C) restricted stock plan 
D) nonqualified stock option 
A) phantom stock plan 
B) incentive stock option 
C) restricted stock plan 
D) nonqualified stock option

Question 12

A useful tool for determining the true worth of an entire executive compensation package is _____.

Accepted Answer

A) the program evaluation and review technique (PERT) 
B) a tally sheet 
C) a Gantt chart 
D) the graphical evaluation and review technique (GERT) 
A) the program evaluation and review technique (PERT) 
B) a tally sheet 
C) a Gantt chart 
D) the graphical evaluation and review technique (GERT)

Question 13

In a recession environment, companies need to react to the decreasing level of sales by rewarding top-level performers that achieve high levels of sales despite the economic downturn.

Accepted Answer

A) True 
 B)False

Question 14

Contingent workers are usually considered candidates for special compensation.

Accepted Answer

A) True 
 B)False

Question 15

In which of the following situations would the engineering jobs be most likely treated as a special compensation group?

Accepted Answer

A) Mechanical engineers employed by a large city corporation 
B) Computer engineers employed at a software firm 
C) Biomolecular engineers employed at a farm equipment manufacturer 
D) Acoustical engineers at a waste disposal company 
A) Mechanical engineers employed by a large city corporation 
B) Computer engineers employed at a software firm 
C) Biomolecular engineers employed at a farm equipment manufacturer 
D) Acoustical engineers at a waste disposal company

Nonqualified stock options require _____.

Popular stereotypes of salespeople characterize them as being heavily motivated by _____.

List the basic components of most executive compensation packages.

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

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:

Compensation committees of boards of directors typically set executive salaries.

Working through a temporary-help agency usually means:

Independent contractors always earn less than their permanently employed counterparts.

Members of boards of directors are not categorized as candidates for special compensation.

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

A(n) _____ awards cash or stock that is determined by an increase in stock price at a fixed future date.

A useful tool for determining the true worth of an entire executive compensation package is _____.

In a recession environment, companies need to react to the decreasing level of sales by rewarding top-level performers that achieve high levels of sales despite the economic downturn.

Contingent workers are usually considered candidates for special compensation.

In which of the following situations would the engineering jobs be most likely treated as a special compensation group?

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: 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

Nonqualified stock options require _____.

Popular stereotypes of salespeople characterize them as being heavily motivated by _____.

List the basic components of most executive compensation packages.

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

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:

Compensation committees of boards of directors typically set executive salaries.

Working through a temporary-help agency usually means:

Independent contractors always earn less than their permanently employed counterparts.

Members of boards of directors are not categorized as candidates for special compensation.

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

A(n) _____ awards cash or stock that is determined by an increase in stock price at a fixed future date.

A useful tool for determining the true worth of an entire executive compensation package is _____.

In a recession environment, companies need to react to the decreasing level of sales by rewarding top-level performers that achieve high levels of sales despite the economic downturn.

Contingent workers are usually considered candidates for special compensation.

In which of the following situations would the engineering jobs be most likely treated as a special compensation group?

Pay-For-Performance: The Evidence

Strategy: The Totality of Decisions

Defining Internal Alignment

R: 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