Question 1

Which of the following is the primary benefit of employee stock ownership plans?

Accepted Answer

A)  Firms are able to implement the plans with minimal costs and complications. 
B)  Firms pay distribution taxes for employees prior to retirement. 
C)  Firms may borrow against employee stock held in trust. 
D)  Employees are able to diversify their investments.

Question 2

What is the Sarbanes-Oxley Act? How does it affect incentive plans? Do you support the legislation? Why or why not?

Accepted Answer

The answer of What is the Sarbanes-Oxley Act? How does...

Question 3

Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.

Accepted Answer

A) True 
 B)False

Question 4

The Scanlon plan is a type of gainsharing plan.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following was shown by the Harvard Business School to have the greatest impact on employee engagement?

Accepted Answer

A)  feedback 
B)  job design 
C)  responsibility 
D)  challenging work

Question 6

Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards.

Accepted Answer

A) True 
 B)False

Question 7

The employees at DataMax participate in a profit-sharing plan.DataMax distributes 15% of its profits as profit shares to employees at regular intervals.Which of the following is most likely used at DataMax?

Accepted Answer

A)  current profit-sharing 
B)  Lincoln incentive system 
C)  deferred profit-sharing plan 
D)  employee stock ownership plan

Question 8

Using a straight salary to compensate salespeople is most likely ineffective because it ________.

Accepted Answer

A)  discourages sales flexibility 
B)  lacks connection to performance 
C)  makes it hard to switch territories 
D)  depends on annual corporate profits

Question 9

Which of the following best explains identity in regards to the Scanlon plan?

Accepted Answer

A)  philosophy of cooperation among employees 
B)  clear articulation of the company mission 
C)  high level of competence from all employees 
D)  corporate-wide benefits and savings

Question 10

A straight salary is most appropriate when a salesperson's primary duties involve ________.

Accepted Answer

A)  finding new clients 
B)  meeting sales quotas 
C)  pushing hard-to-sell items 
D)  fostering relationships with customers

Exam 12: Pay for Performance and Financial Incentives

Which of the following is the primary benefit of employee stock ownership plans?

What is the Sarbanes-Oxley Act? How does it affect incentive plans? Do you support the legislation? Why or why not?

Lump sum merit increases can be a more significant motivator than traditional merit pay because the amount seems greater when received all at once.

The Scanlon plan is a type of gainsharing plan.

Which of the following was shown by the Harvard Business School to have the greatest impact on employee engagement?

Most firms link employees' pay to performance because financial incentives are extremely successful at motivating employees to perform above required standards.

The employees at DataMax participate in a profit-sharing plan.DataMax distributes 15% of its profits as profit shares to employees at regular intervals.Which of the following is most likely used at DataMax?

Using a straight salary to compensate salespeople is most likely ineffective because it ________.

Which of the following best explains identity in regards to the Scanlon plan?

A straight salary is most appropriate when a salesperson's primary duties involve ________.