Unit 4 – Q6 – P54
 Prevailing wage laws must be adhered to by
employers:
A.
B.
C.
D.
When hiring disadvantaged minorities.
To avoid discriminatory hiring practices.
Having contracts with the U.S. Government.
With multiple locations throughout the U.S. and
internationally.
1
Unit 4 – Q13 – P56
 Examples of differential pay include:
A.
B.
C.
D.
Paid sick leave, holidays, and vacation.
Bonus and overtime pay.
Overtime, shift pay, and hazard pay.
Shift pay, premium pay, and hazard pay.
2
Unit 4 – Q17 – P57
 A _________ is an executive contract provision
promising enhanced severance pay should there be a
merger or acquisition:
A.
B.
C.
D.
Silver Parachute
Professional Severance Package
Golden Parachute
Career Severance Package
3
Unit 4 – Q20 – P58
 Please select the BEST answer. A good compensation
plan should
A. Support the organization's overall philosophy and
culture
B. Be perceived as fair
C. Be strategic, equitable, competitive, and efficient
D. Be able to recruit and retain employees
4
Unit 4 – Q44 – P65
 Employees with over $50,000 in employer provided
life insurance, must :
A.
B.
C.
D.
List secondary beneficiaries
Pay taxes on the premium over $50,000
Pay taxes on the total premium paid each year
Provide an authorization statement from the
employee's spouse if not designated as the primary
beneficiary
5
Unit 4 – Q46 – P65
 In a ___________, the employee retirement account
is in the participant's name and the account balance
is determined by fund performance
A.
B.
C.
D.
Defined-Contribution Plan
Defined-Benefit Plan
Discretionary Plan
Cash Balance Plan
6
Unit 4 – Q50 – P67
 The Balance Sheet approach to international
compensation :
A. Pays expatriates on the same pay scale as the
employees in the host country
B. Adjusts expatriate compensation to provide the
equivalent U.S. standard of living
C. Does not adjust compensation, but allows for home
country visits
D. Assumes the expatriate will remain outside of the
U.S. for the duration of his/her career
7
Unit 4 – Q2 – P81
 65 employees work at an insurance company's
corporate office in Chicago and they all live within the
city limits. There are ten sales offices scattered
around the state. Each sales office has between 2 and
10 employees. The claims adjuster in the sales office
in Springfield (about I5O miles from Chicago) has
been a full time employee for the past 14 months. He
requests time off to care for a seriously ill child. Must
the employer grant an FMLA leave?
--- To be continued.
8
Unit 4 – Q2 – P81
A. Yes, the employee meets the FMLA eligibility requirements.
and the employer is a covered entity because there are more
than 50 employees within the same state
B. No, although the employee eligibility requirement is met,
there are not the required 50 employees at the Springfield
sales office so the sales office is not a covered entity.
C. Yes, the employee meets the FMLA eligibility requirements,
and the employer is a covered entity because there are more
than 50 employees in the corporate office.
D. No, the employee does not meet the FMLA eligibility
requirement, and the employer is not a covered entity.
9
Unit 4 – Q12 – P85
 Jane earns $15.00/hour as an Accounting Assistant. In
Jane's organization, an Accounting Assistant job is in
Grade 4 with a pay range of $9.00 - $25.00. The
midpoint of the range is $17.00. What is Jane's
compa-ratio?
A.
B.
C.
D.
.88
1.67
1.133
.60
10
Unit 4 – Q4 – P108
 Under an entitlement philosophy, which
compensation practice is most likely to occur
A.
B.
C.
D.
Step increases
Pay for Performance
Cost of living adjustments
Increase in benefits packages
11
Unit 4 – Q8 – P109
 Employees who participate in either an Employee
Stock Purchase Plan or an Incentive Stock Option Plan
are not required to:
A. Pay income tax upon the grant
B. Have documentation concerning number of shares
owned
C. Pay tax upon the sale of such securities
D. Pay any tax at all
12
Unit 4 – Q9 – P109
 An employer has three Customer Service
Representatives who were all hired in 1996. Each CSR
currently earns $10, $12, and $15 per hour
respectively. This year, the employer needed to hire
two more CSR's and plans to pay $14 per hour. This is
an example of :
A.
B.
C.
D.
Unfair labor practice
Excessive pay
Pay compression
Improper pay practices
13
Unit 4 – Q20 – P113
 Two organizations are about to merge. One values
innovation and rewards its' top creators with
individual recognition. The other encourages team
involvement. Which of the following systems is most
likely to be changed?
A.
B.
C.
D.
Sales and Marketing strategy
Product research and development
Compensation and benefit plans
Finance and Accounting procedures
14
Unit 4 – Q3 – P125
 The value of the ________ will be considered
imputed taxable income to the employees.
A.
B.
C.
D.
employer paid medical insurance premiums
company match to each employee's 401(k) account
employer provided life insurance premiums
company car that is used for personal use
15
Unit 4 – Q8 – P127
 When job analysis is done for compensation
purposes, the data collected should focus on:
A.
B.
C.
D.
the training needed to effectively perform the job
the career path for each job
task inventories
the similarities and differences between jobs
16
Unit 4 – Q9 – P127
 The major problem in compensating expatriates
arises :
A. when employees are first sent to foreign countries
and they are still aware of market rates
B. from the need to preserve equity.
C. when the percentage of expatriates begins to pass
33%
D. because foreign rules governing compensation are
so complex.
17