Question 1

The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent.

Accepted Answer

A)  10-20 
B)  5- 30 
C)  15- 20 
D)  15- 35 
A)  10-20 
B)  5- 30 
C)  15- 20 
D)  15- 35

Question 2

Nonqualified stock options involve _____.

Accepted Answer

A)  purchase of stock at a stipulated price, not conforming with Internal Revenue Code 
B)  cash or stock award determined by increase in stock price at a fixed future date 
C)  cash or stock award determined by 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 Internal Revenue Code 
B)  cash or stock award determined by increase in stock price at a fixed future date 
C)  cash or stock award determined by 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 3

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

Accepted Answer

A)  sales staff 
B)  contingent workers 
C)  workers covered by the ADA 
D)  professionals 
A)  sales staff 
B)  contingent workers 
C)  workers covered by the ADA 
D)  professionals

Question 4

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

Accepted Answer

A)  Mechanical and civil engineers employed at a large city 
B)  Computer engineers employed at a software firm 
C)  Mechanical engineers employed at a farm equipment manufacturer 
D)  Environmental engineers at a waste disposal company 
A)  Mechanical and civil engineers employed at a large city 
B)  Computer engineers employed at a software firm 
C)  Mechanical engineers employed at a farm equipment manufacturer 
D)  Environmental engineers at a waste disposal company

Question 5

The _____ component of executive compensation has grown the most since the 1970s.

Accepted Answer

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

Question 6

Which of the following is the most popular executive perk offered by most companies (91 percent)?

Accepted Answer

A)  Physical examination 
B)  Income tax preparation 
C)  An executive dining room 
D)  A company car 
A)  Physical examination 
B)  Income tax preparation 
C)  An executive dining room 
D)  A company car

Question 7

One problem with using stock options for executives is they may not be paying the executive for performance.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

Executives,supervisors and sales staff often receive special compensation treatment because _____.

Accepted Answer

A)  these jobs face conflicting demands 
B)  these jobs are exempt under FLSA 
C)  recruiting and retention is difficult for these jobs 
D)  these jobs are covered under the Sarbanes-Oxley Act 
A)  these jobs face conflicting demands 
B)  these jobs are exempt under FLSA 
C)  recruiting and retention is difficult for these jobs 
D)  these jobs are covered under the Sarbanes-Oxley Act

Question 10

Independent contractors generally are less expensive for employers since they receive no benefits.

Accepted Answer

A) True 
 B)False

Question 11

ERISA and the tax code specify that the average value of benefits for low-paid employees must be at least 75 percent of those of highly paid employees.

Accepted Answer

A) True 
 B)False

Question 12

Explain any one element of an executive compensation package in detail.

Accepted Answer

Base Salary: Although formalized job eva

Question 13

Customer satisfaction indices are increasingly popular because of _____.

Accepted Answer

A)  a greater emphasis on quality 
B)  the loss of accounts 
C)  sustaining profit improvement 
D)  decreasing employee satisfaction 
A)  a greater emphasis on quality 
B)  the loss of accounts 
C)  sustaining profit improvement 
D)  decreasing employee satisfaction

Question 14

_____ is (are)a relatively uncommon form of board of directors' pay.

Accepted Answer

A)  Approximately $55,000 in cash 
B)  Long-term incentives 
C)  Both cash and long-term incentives 
D)  Tying pay to stock performance 
A)  Approximately $55,000 in cash 
B)  Long-term incentives 
C)  Both cash and long-term incentives 
D)  Tying pay to stock performance

Question 15

Describe how executives ensure themselves high compensation.

Accepted Answer

Agency theory incorporates the political

Question 16

Describe the types of long-term incentives for executives.

Accepted Answer

Cash or stock award determined by increa

Question 17

Gross margin on sales or price per unit would be the appropriate measurement if the goal is _____.

Accepted Answer

A)  increased sales growth 
B)  improved account retention 
C)  profit improvement 
D)  greater emphasis on quality 
A)  increased sales growth 
B)  improved account retention 
C)  profit improvement 
D)  greater emphasis on quality

Question 18

Briefly describe the role of contingent workers.Why are most U.S.employers hiring contingent workers? What is the compensation challenge for contingent workers?

Accepted Answer

A contingent worker is defined as anyone

Question 19

The _____ theory argues that executive pay rises to maintain the same relationship to 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 20

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

Accepted Answer

A)  the balance sheet 
B)  a tally sheet 
C)  the executive's tax return 
D)  an audit of the executive's income and expenses 
A)  the balance sheet 
B)  a tally sheet 
C)  the executive's tax return 
D)  an audit of the executive's income and expenses

The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent.

Nonqualified stock options involve _____.

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

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

The _____ component of executive compensation has grown the most since the 1970s.

Which of the following is the most popular executive perk offered by most companies (91 percent)?

One problem with using stock options for executives is they may not be paying the executive for performance.

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

Executives,supervisors and sales staff often receive special compensation treatment because _____.

Independent contractors generally are less expensive for employers since they receive no benefits.

ERISA and the tax code specify that the average value of benefits for low-paid employees must be at least 75 percent of those of highly paid employees.

Explain any one element of an executive compensation package in detail.

Customer satisfaction indices are increasingly popular because of _____.

_____ is (are)a relatively uncommon form of board of directors' pay.

Describe how executives ensure themselves high compensation.

Describe the types of long-term incentives for executives.

Gross margin on sales or price per unit would be the appropriate measurement if the goal is _____.

Briefly describe the role of contingent workers.Why are most U.S.employers hiring contingent workers? What is the compensation challenge for contingent workers?

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

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

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 Structures

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

The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent.

Nonqualified stock options involve _____.

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

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

The _____ component of executive compensation has grown the most since the 1970s.

Which of the following is the most popular executive perk offered by most companies (91 percent)?

One problem with using stock options for executives is they may not be paying the executive for performance.

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

Executives,supervisors and sales staff often receive special compensation treatment because _____.

Independent contractors generally are less expensive for employers since they receive no benefits.

ERISA and the tax code specify that the average value of benefits for low-paid employees must be at least 75 percent of those of highly paid employees.

Explain any one element of an executive compensation package in detail.

Customer satisfaction indices are increasingly popular because of _____.

_____ is (are)a relatively uncommon form of board of directors' pay.

Describe how executives ensure themselves high compensation.

Describe the types of long-term incentives for executives.

Gross margin on sales or price per unit would be the appropriate measurement if the goal is _____.

Briefly describe the role of contingent workers.Why are most U.S.employers hiring contingent workers? What is the compensation challenge for contingent workers?

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

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

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 Structures

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