Question 1

COBRA requires employers to permit departing employees to continue their health insurance for up to 3 years at the employees' expense.

Accepted Answer

A) True 
 B)False

Question 2

To design a successful benefits strategy,employers should most likely consider:

Accepted Answer

A)  two areas: benefits amount and the flexibility of benefits. 
B)  two areas: benefits mix and the flexibility of benefits. 
C)  three areas: benefits mix, the flexibility of benefits, and the benefits amount. 
D)  four areas: benefits mix, the flexibility of benefits, the benefits amount, and benefits communication. 
A)  two areas: benefits amount and the flexibility of benefits. 
B)  two areas: benefits mix and the flexibility of benefits. 
C)  three areas: benefits mix, the flexibility of benefits, and the benefits amount. 
D)  four areas: benefits mix, the flexibility of benefits, the benefits amount, and benefits communication.

Question 3

A modular benefits plan allows employees to select different bundles of benefits or different levels of benefits.

Accepted Answer

A) True 
 B)False

Question 4

Upon retirement,people typically have how many main sources of income?

Accepted Answer

A)  Two - Social Security benefits and retirement benefits 
B)  Two - Social Security benefits and personal savings 
C)  Three - Social Security benefits, personal savings, and retirement benefits 
D)  Four - Social Security benefits, personal savings, retirement benefits, and inheritance benefits 
A)  Two - Social Security benefits and retirement benefits 
B)  Two - Social Security benefits and personal savings 
C)  Three - Social Security benefits, personal savings, and retirement benefits 
D)  Four - Social Security benefits, personal savings, retirement benefits, and inheritance benefits

Question 5

Long-term disability insurance:

Accepted Answer

A)  takes effect after unemployment insurance runs out. 
B)  begins after a disability of six months. 
C)  replaces 100% of an employee's income for up to six months. 
D)  supplements unemployment insurance payments. 
A)  takes effect after unemployment insurance runs out. 
B)  begins after a disability of six months. 
C)  replaces 100% of an employee's income for up to six months. 
D)  supplements unemployment insurance payments.

Question 6

The Family and Medical Leave Act does NOT apply to employees who have:

Accepted Answer

A)  previously adopted children. 
B)  been with an employer less than one year. 
C)  reached retirement age. 
D)  previously taken FMLA leave. 
A)  previously adopted children. 
B)  been with an employer less than one year. 
C)  reached retirement age. 
D)  previously taken FMLA leave.

Question 7

Apex Consulting wants to offer its employees a health insurance plan that gives the employees the greatest amount of choice in hospital and physician selection.Which of the following would be the best choice for Apex?

Accepted Answer

A)  HMO 
B)  PPO 
C)  Traditional insurance plan 
D)  Flexible spending account 
A)  HMO 
B)  PPO 
C)  Traditional insurance plan 
D)  Flexible spending account

Question 8

Typically,long-term disability compensation replaces about 40-50% of employees' income after they have been disabled for at least three months.

Accepted Answer

A) True 
 B)False

Question 9

Additional Case 12.2
Tri-State Shipping employs 45 workers. They ship commodities across the country. Until recently, they had only legally required benefits, but business has become very profitable and they can now offer their employees more benefits.
The average age of their employees is 50. Most employees have been there for more than 20 years, and the company prides itself on keeping workers. The majority of the jobs require heavy lifting or the operation of heavy equipment for loading and unloading trucks, trains, etc. Their workers' compensation tax has been running about 5% per year. They are in one of the lowest workers' compensation tax rate states, but TSS has had a lot of injuries. The lifting required and type of equipment used tends to result in a lot of sprained backs, mashed fingers, or bruised muscles. When workers are injured, they tend to heal quickly and return to work quickly.
Despite its reputation for keeping workers, the dock supervisor recently fired a 21-year old employee who had been with TSS for 12 months. Even though everyone liked him, the young man just couldn't learn his job.
-Refer to Additional Case 12.2.The young man who was fired is most likely:

Accepted Answer

A)  eligible for workers' compensation. 
B)  not eligible for unemployment insurance benefits. 
C)  not covered by ERISA because of his age. 
D)  eligible for unemployment insurance benefits. 
A)  eligible for workers' compensation. 
B)  not eligible for unemployment insurance benefits. 
C)  not covered by ERISA because of his age. 
D)  eligible for unemployment insurance benefits.

Question 10

A qualified retirement plan:

Accepted Answer

A)  requires employees to pay taxes on current income, but not retirement distributions. 
B)  prohibits employees from paying tax on contributions to the plan. 
C)  favors highly compensated employees over lower-paid workers. 
D)  prevents employers from taking a tax deduction. 
A)  requires employees to pay taxes on current income, but not retirement distributions. 
B)  prohibits employees from paying tax on contributions to the plan. 
C)  favors highly compensated employees over lower-paid workers. 
D)  prevents employers from taking a tax deduction.

Question 11

Dick has recently been laid off from his unionized manufacturing job where he has been a full-time worker for the last 14 years.He has been looking for work for nearly five months.Which of the following is most likely true in Dick's case?

Accepted Answer

A)  Dick is not eligible for unemployment insurance. 
B)  Dick's unemployment insurance will run out at the end of the fifth month. 
C)  Dick is probably receiving 60% of the earnings he received from his job. 
D)  Since Dick's company was unionized, he may be eligible for supplemental unemployment benefits. 
A)  Dick is not eligible for unemployment insurance. 
B)  Dick's unemployment insurance will run out at the end of the fifth month. 
C)  Dick is probably receiving 60% of the earnings he received from his job. 
D)  Since Dick's company was unionized, he may be eligible for supplemental unemployment benefits.

Question 12

Additional Case 12.1
The HR Director of The Camera Center is leading the executive team through a review of the company's benefits plan. He begins by explaining how the firm funds the benefits plan. After a few questions on that matter, he moves on to clarify what they must offer by law and what benefits the firm would like to provide.
A highly entrepreneurial, performance-driven company, The Camera Center provides an excellent profit-sharing plan and one of the best retirement packages in the industry. The firm commits a high portion of compensation funds to the benefits plan. The workforce tends to be college-educated, young professionals who are just starting their families.
The CEO wants the total benefits plan reviewed and repackaged, if necessary, to align it with The Camera Center's business culture and strategy. He also wants to contain costs as much as possible and simplify benefits 
administration.
-Refer to Additional Case 12.1.This company's benefits mix:

Accepted Answer

A)  matches the firm's culture and objectives. 
B)  is almost the opposite of what the firm needs. 
C)  would be better if it included variable pay as well. 
D)  violates federal law because the firm doesn't offer health care. 
A)  matches the firm's culture and objectives. 
B)  is almost the opposite of what the firm needs. 
C)  would be better if it included variable pay as well. 
D)  violates federal law because the firm doesn't offer health care.

Question 13

Effective employee benefits packages:

Accepted Answer

A)  help firms train and motivate their employees. 
B)  maximize traditional insurance coverage. 
C)  help firms recruit and retrain employees. 
D)  replace the need for unemployment insurance. 
A)  help firms train and motivate their employees. 
B)  maximize traditional insurance coverage. 
C)  help firms recruit and retrain employees. 
D)  replace the need for unemployment insurance.

Question 14

A ________ provides employees with minimal economic security and the ability to "purchase" additional benefits of value to them.

Accepted Answer

A)  core-plus option plan 
B)  modular plan 
C)  flexible spending account 
D)  health savings account 
A)  core-plus option plan 
B)  modular plan 
C)  flexible spending account 
D)  health savings account

Question 15

A benefits program that allows employees to select the benefits they need most from a menu of choices is referred to as a(n)________.

Accepted Answer

flexible o

Question 16

As an HR manager,you would most likely face all of the following challenges when handling flexible benefits plans EXCEPT:

Accepted Answer

A)  intense use of a benefit by employees that increases costs. 
B)  inadequate government guidelines and rules. 
C)  significant complexity of administration. 
D)  high potential for recordkeeping errors. 
A)  intense use of a benefit by employees that increases costs. 
B)  inadequate government guidelines and rules. 
C)  significant complexity of administration. 
D)  high potential for recordkeeping errors.

Question 17

Workers' compensation covers medical care and rehabilitation costs but not income replacement,since that falls under Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 18

Employee contributions to a qualified retirement plan are usually tax-deferred until the employee retires.

Accepted Answer

A) True 
 B)False

Question 19

An HMO-based health plan:

Accepted Answer

A)  provides comprehensive coverage for a flat annual fee. 
B)  provides maximum flexibility to the employee. 
C)  covers 80% of doctor and 100% of hospital bills. 
D)  does not cover preventive care services. 
A)  provides comprehensive coverage for a flat annual fee. 
B)  provides maximum flexibility to the employee. 
C)  covers 80% of doctor and 100% of hospital bills. 
D)  does not cover preventive care services.

Question 20

The United States provides the fewest vacation days of any country in the world.

Accepted Answer

A) True 
 B)False

COBRA requires employers to permit departing employees to continue their health insurance for up to 3 years at the employees' expense.

To design a successful benefits strategy,employers should most likely consider:

A modular benefits plan allows employees to select different bundles of benefits or different levels of benefits.

Upon retirement,people typically have how many main sources of income?

Long-term disability insurance:

The Family and Medical Leave Act does NOT apply to employees who have:

Apex Consulting wants to offer its employees a health insurance plan that gives the employees the greatest amount of choice in hospital and physician selection.Which of the following would be the best choice for Apex?

Typically,long-term disability compensation replaces about 40-50% of employees' income after they have been disabled for at least three months.

A qualified retirement plan:

Dick has recently been laid off from his unionized manufacturing job where he has been a full-time worker for the last 14 years.He has been looking for work for nearly five months.Which of the following is most likely true in Dick's case?

Effective employee benefits packages:

A ________ provides employees with minimal economic security and the ability to "purchase" additional benefits of value to them.

A benefits program that allows employees to select the benefits they need most from a menu of choices is referred to as a(n)________.

As an HR manager,you would most likely face all of the following challenges when handling flexible benefits plans EXCEPT:

Workers' compensation covers medical care and rehabilitation costs but not income replacement,since that falls under Social Security benefits.

Employee contributions to a qualified retirement plan are usually tax-deferred until the employee retires.

An HMO-based health plan:

The United States provides the fewest vacation days of any country in the world.

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Managing Compensation

Rewarding Performance

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters

Exam 12: Designing and Administering Benefits

COBRA requires employers to permit departing employees to continue their health insurance for up to 3 years at the employees' expense.

To design a successful benefits strategy,employers should most likely consider:

A modular benefits plan allows employees to select different bundles of benefits or different levels of benefits.

Upon retirement,people typically have how many main sources of income?

Long-term disability insurance:

The Family and Medical Leave Act does NOT apply to employees who have:

Apex Consulting wants to offer its employees a health insurance plan that gives the employees the greatest amount of choice in hospital and physician selection.Which of the following would be the best choice for Apex?

Typically,long-term disability compensation replaces about 40-50% of employees' income after they have been disabled for at least three months.

A qualified retirement plan:

Dick has recently been laid off from his unionized manufacturing job where he has been a full-time worker for the last 14 years.He has been looking for work for nearly five months.Which of the following is most likely true in Dick's case?

Effective employee benefits packages:

A ________ provides employees with minimal economic security and the ability to "purchase" additional benefits of value to them.

A benefits program that allows employees to select the benefits they need most from a menu of choices is referred to as a(n)________.

As an HR manager,you would most likely face all of the following challenges when handling flexible benefits plans EXCEPT:

Workers' compensation covers medical care and rehabilitation costs but not income replacement,since that falls under Social Security benefits.

Employee contributions to a qualified retirement plan are usually tax-deferred until the employee retires.

An HMO-based health plan:

The United States provides the fewest vacation days of any country in the world.

Meeting Present and Emerging Strategic Human Resource Challenges

Managing Work Flows and Conducting Job Analysis

Understanding Equal Opportunity and the Legal Environment

Managing Diversity

Recruiting and Selecting Employees

Managing Employee Separations, Downsizing, and Outplacement

Appraising and Managing Performance

Training the Workforce

Developing Careers

Managing Compensation

Rewarding Performance

Developing Employee Relations

Respecting Employee Rights and Managing Discipline

Working With Organized Labor

Managing Workplace Safety and Health

International HRM Challenge

Filters