Question 1

A problem with flexible benefits plans is ____,a situation in which only higher-risk employees select certain benefits,such as health insurance,and lower-risk employees do not select these benefits.

Accepted Answer

A)  concentration of risk 
B)  perceived invulnerability 
C)  adverse selection 
D)  the skewed distribution effect

Question 2

An advantage of unemployment compensation is that because it is funded by a tax on employers,state unemployment funds are able to remain solvent during economic downturns.

Accepted Answer

A) True 
 B)False

Question 3

____ refers to a feature that allows employees to move their pension benefits from one employer to another.

Accepted Answer

A)  Portability 
B)  Mobility 
C)  Vesting 
D)  Transferability

Question 4

The Older Worker Benefit Protection Act (OWBPA)sets forth some very specific conditions that must be met when older workers

Accepted Answer

A)  move from full-time to part-time status. 
B)  are denied coverage under an employer's health insurance plan. 
C)  are offered early retirement. 
D)  apply for supplemental social security benefits.

Question 5

If HR experts suggest that a solution for "presenteeism" is employee health-and-wellness programs,this means that these HR experts attribute presenteeism to

Accepted Answer

A)  the need to reduce the amount of stress employees are subjected to in their jobs. 
B)  the use of recreational drugs at work. 
C)  employees coming to work when they are sick. 
D)  inadequate employer-provided health insurance.

Question 6

Which of the following statements is TRUE?

Accepted Answer

A)  Mini-medical plans are most appealing to large companies with a high proportion of women employees. 
B)  These plans are popular with retirees who are working part-time because it supplements their Medicare coverage. 
C)  Mini-medical plans are inexpensive for the employer because the services provided are minimal and capped at a low level. 
D)  Mini-medical plans are becoming more popular because although they do not cover minor medical expenses, they do cover catastrophic illnesses or injuries.

Question 7

Although no federal law requires this,most states have laws that require employers not discriminate against domestic partners and provide them the same benefits as traditional married couples.

Accepted Answer

A) True 
 B)False

Question 8

Angela,who lives in Alabama,recently turned down an attractive job offer as director of marketing from a firm in Oregon because it would not provide assistance in finding a job for her husband or assistance in buying a new home in Oregon,where house prices are much higher than in Alabama.It appears that the Oregon firm

Accepted Answer

A)  has an entitlement benefits philosophy. 
B)  does not have a relocation assistance program. 
C)  does not offer benefits for domestic partners. 
D)  is discriminating against women.

Question 9

In the U.S.,Japan,Germany,France and other countries,____ is/are placing significant financial pressures on government-provided retirement security plans.

Accepted Answer

A)  a high birth rate 
B)  an aging population 
C)  increasing standards for quality-of-life in old age 
D)  the trend for older workers to work past traditional retirement age

Question 10

Which of the following is NOT a typical offering of a company child-care benefit?

Accepted Answer

A)  providing paid family leave. 
B)  sick-child programs jointly offered with hospitals 
C)  after-school programs, jointly offered with a school system 
D)  subsidized day care

Question 11

Betty is interviewing for a job with two different firms in the same industry and city.The job description and salary are identical.In one company the job will be unionized.The other company is non-union.Betty can expect that

Accepted Answer

A)  the non-union firm will have more generous benefits. 
B)  the unionized firm will have more generous benefits. 
C)  the benefits will be the same at both companies, since benefits are typically based on salary level. 
D)  the unionized firm will likely offer no benefits, because these firms are encountering severe cost-pressures due to global competition.

Question 12

The Family and Medical Leave Act (FMLA)defines a ____ as one requiring in-patient,hospital,hospice,or residential medical care or continuing physician care.

Accepted Answer

A)  medical leave event 
B)  serious health condition 
C)  life threatening illness 
D)  covered health-related event

Question 13

A long-time assembly line worker,Ed,and his wife have divorced.Under COBRA rules,who must HR notify of their opportunities for extended health benefits?

Accepted Answer

A)  only Ed's wife 
B)  Ed's wife and Ed's dependent children 
C)  Ed's wife, his dependent children, and Ed's dependent elderly parents 
D)  No one, since this is a divorce and not Ed's death.

Question 14

To prevent employees from making inappropriate benefits choices in a flexible benefits plan it is recommended that

Accepted Answer

A)  the employees be required to select a core set of benefits. 
B)  the HR department counsel employees in wise benefit selection. 
C)  benefit flexibility be tied to employee seniority. 
D)  hourly employees not be offered flexible benefits.

Question 15

What are the requirements of the Consolidated Omnibus Budget Reconciliation Act (COBRA)with respect to health care?

Accepted Answer

A)  Employers with more than 50 employees must provide medical insurance for all full-time employees. 
B)  Most employers with 20 or more employees must offer extended health-care coverage to employees after they leave the organization. 
C)  Employees on COBRA pay 2% more for health insurance than they paid before going on the COBRA plan. 
D)  Employers offering medical insurance cannot exclude pre-existing conditions from coverage.

Question 16

Maxine is a single mother with an entry-level management job.She needs to consider her 3-year-old child's future welfare if she should die before her child is self-supporting.Maxine has learned that her company offers group life insurance at the typical level of coverage most companies offer.Maxine will be ____,because the typical level of coverage is ____.

Accepted Answer

A)  somewhat disappointed, 10 years of annual salary 
B)  very disappointed, one-and-one-half years of annual salary. 
C)  pleased, 20 years of annual salary. 
D)  pleased, full annual salary until the dependent is 18.

Question 17

Colossus Solar Enterprises is moving its headquarters from Los Angeles to Austin.The HR department has been charged with retaining as many of the LA employees as possible by using relocation benefits.The following are all typical relocation benefits EXCEPT

Accepted Answer

A)  assistance in finding a job in Austin for the spouse of the employee transferring from LA. 
B)  helping sell the employee's house in LA and buying a house in Austin. 
C)  bonuses for LA employees accepting a transfer to Austin. 
D)  use of a company expense account while the employee is on house or apartment hunting trips to Austin.

Question 18

A group of employees has approached the HR manager with a request that the company sponsor a softball league.The HR manager thinks this is a good idea because a company softball team will

Accepted Answer

A)  improve employee productivity. 
B)  decrease absenteeism. 
C)  increase team spirit among employees. 
D)  improve employee health and wellness.

Question 19

Roger's mother is in the early stages of Alzheimer's disease,and Roger's father also died of Alzheimer's.Roger,who is 55,is very concerned that he will develop this disease as well.Roger would be most pleased if his company offered

Accepted Answer

A)  an integrated disability management plan. 
B)  employee wellness programs. 
C)  long-term care insurance. 
D)  flexible spending accounts.

Question 20

When promoting family-friendly benefits to top management,the director of HR's most accurate argument for their effectiveness is in

Accepted Answer

A)  recruiting top quality candidates. 
B)  aiding employee retention. 
C)  increasing productivity of employees with families. 
D)  reducing the number of complaints, grievances, and lawsuits by employees with families.

Exam 13: Managing Employee Benefits