Question 1

Which term refers to the right to purchase a stated number of shares of a company stock at today's price at some time in the future?

Accepted Answer

A)  stock option 
B)  gainsharing plan 
C)  multiplier method 
D)  at-risk variable plan

Question 2

Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement.Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?

Accepted Answer

A)  Jefferson incentive system 
B)  deferred profit-sharing plan 
C)  gainsharing plan 
D)  cash plan

Question 3

All of the following are Social Security benefits EXCEPT ________.

Accepted Answer

A)  death benefits 
B)  disability payments 
C)  retirement benefits 
D)  defined contribution benefits

Question 4

Which term refers to any plan that ties pay to productivity or profitability?

Accepted Answer

A)  piecework 
B)  variable pay 
C)  merit pay 
D)  overtime pay

Question 5

Which of the following terms refers to any salary increase the firm awards to an individual employee based on his or her individual performance?

Accepted Answer

A)  merit pay 
B)  variable pay 
C)  competency-based pay 
D)  incentive pay

Question 6

Which of the following is NOT a true statement about the Family and Medical Leave Act?

Accepted Answer

A)  The law applies to all public and private employers regardless of size. 
B)  Eligible employees have worked for the employer for at least one year. 
C)  Leave may be taken for personal illness or the birth of a child. 
D)  Eligible employees must be granted up to 12 weeks of leave.

Question 7

Flexible benefits plans enable employees to spend their benefits allowances as they desire and to opt out of certain benefits,such as disability and unemployment insurance.

Accepted Answer

A) True 
 B)False

Question 8

How does merit pay differ from a bonus?

Accepted Answer

A)  Merit pay becomes part of an employee's base pay, but a bonus does not. 
B)  A bonus becomes part of an employee's base pay, but merit pay does not. 
C)  Merit pay is linked to individual performance, while a bonus is linked to profits. 
D)  A bonus is linked to individual performance, while merit pay is linked to profits.

Question 9

Merit raises typically become part of an employee's base salary.

Accepted Answer

A) True 
 B)False

Question 10

Every month,Angela,a manager at a manufacturing facility,meets briefly with each of her subordinates and shows them a graph of their productivity on the assembly line.Which term best describes Angela's activity?

Accepted Answer

A)  exit interview 
B)  social recognition 
C)  performance feedback 
D)  performance appraisal

Question 11

Which condition must be met for an injured employee to receive workers' compensation benefits?

Accepted Answer

A)  The injury occurred during an overtime or nighttime shift. 
B)  The employee was wearing adequate protection. 
C)  The injury was not the fault of the employee. 
D)  The employee was injured while on the job.

Question 12

Why are family-friendly benefits increasingly valuable to employees? What are some examples of family-friendly benefits?

Accepted Answer

The answer of Why are family-friendly benefits increasingly valuable to...

Question 13

Craig was born in 1961.According to the Social Security Act,what is Craig's full retirement age?

Accepted Answer

A)  62 
B)  65 
C)  67 
D)  70

Question 14

Enterprise incentive management software is used by managers to ________.

Accepted Answer

A)  motivate employees to meet and exceed departmental goals 
B)  quantify correlations between pay and performance 
C)  select and develop mission-critical employees 
D)  monitor training and development needs

Question 15

What is the primary disadvantage of using the straight salary approach to pay salespeople?

Accepted Answer

A)  relying on annual profits 
B)  discouraging staff loyalty 
C)  preventing territory changes 
D)  failing to link effort with reward

Question 16

What are the advantages of employee stock ownership plans?

Accepted Answer

The answer of What are the advantages of employee stock...

Question 17

A(n)________ plan is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings shared among employees and the company.

Accepted Answer

A)  stock gain plan 
B)  merit pay plan 
C)  gainsharing 
D)  ESOP

Question 18

Which of the following is a discretionary benefit?

Accepted Answer

A)  unemployment insurance 
B)  disability insurance 
C)  FMLA leaves 
D)  Social Security

Question 19

Studies indicate that employee assistance programs help reduce absenteeism among employees with family problems and illnesses.

Accepted Answer

A) True 
 B)False

Question 20

A straight salary for salespeople is most appropriate when the main tasks involve ________.

Accepted Answer

A)  selling technical products 
B)  exceeding sales quotas 
C)  finding new clients 
D)  selling real estate

Exam 11: Pay for Performance and Employee Benefits

Which term refers to the right to purchase a stated number of shares of a company stock at today's price at some time in the future?

Tanner's employer puts a predetermined portion of profits into a trust account for Tanner's retirement.Which of the following is most likely the type of profit-sharing plan used by Tanner's employer?

All of the following are Social Security benefits EXCEPT ________.

Which term refers to any plan that ties pay to productivity or profitability?

Which of the following terms refers to any salary increase the firm awards to an individual employee based on his or her individual performance?

Which of the following is NOT a true statement about the Family and Medical Leave Act?

Flexible benefits plans enable employees to spend their benefits allowances as they desire and to opt out of certain benefits,such as disability and unemployment insurance.

How does merit pay differ from a bonus?

Merit raises typically become part of an employee's base salary.

Every month,Angela,a manager at a manufacturing facility,meets briefly with each of her subordinates and shows them a graph of their productivity on the assembly line.Which term best describes Angela's activity?

Which condition must be met for an injured employee to receive workers' compensation benefits?

Why are family-friendly benefits increasingly valuable to employees? What are some examples of family-friendly benefits?

Craig was born in 1961.According to the Social Security Act,what is Craig's full retirement age?

Enterprise incentive management software is used by managers to ________.

What is the primary disadvantage of using the straight salary approach to pay salespeople?

What are the advantages of employee stock ownership plans?

A(n) ________ plan is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings shared among employees and the company.

Which of the following is a discretionary benefit?

Studies indicate that employee assistance programs help reduce absenteeism among employees with family problems and illnesses.

A straight salary for salespeople is most appropriate when the main tasks involve ________.