Question 1

Which BLS survey covers the incidence and detailed
provisions of selected benefit plans, with the data being presented as a
percentage of employees who have access to the benefit plans?

Employer
Costs for Employee Compensation

National
Compensation Survey

National
Benefit Index

Employment
Cost Index

Question 2

This federal Act requires contractors with federal contracts
worth over $2,000 to pay wages at least equal to those prevailing in the area
where the work is being done.

Davis-Bacon
Act

Fair
Labor Standards Act

Civil
Rights Act of 1964

Equal
Pay Act

Question 3

If the company adopts a market lag policy, how will that
company’s pay range midpoint compare to the market average?

The
midpoint will be the same as the market average.

The
midpoint will be lower than the market average.

The
midpoint will be higher than the market average.

There
is not enough information to determine the answer.

Question 4

With which type of sales commission plan does an employee
earn a higher rate of commission for all sales made in a given period if the
sales level exceeds a predetermined level?

Commission-plus-draw
plan

Graduated
commission

Multiple-tiered
commission

Straight
commission

Question 5

This theory suggests that an employee must regard his own
ratio of merit increase pay to performance as similar to the ratio for other
comparably performing people in the company.

Equality
theory

Equity
theory

Comparable
pay theory

Comparable
ratio theory

Question 6

Midpoint, minimum, and maximum are values used to define
which of the following?

Pay
ranges

Pay
structures

Pay
grades

Pay
levels

Question 7

What types of companies are most likely to utilize two-tier
wage systems?

Sales
firms

Private
sector companies

Public
sector companies

Unionized
firms

Question 8

In establishing pay grades, which pay rate is established
first?

Third
quartile

Maximum
pay rate

Minimum
pay rate

Midpoint

Question 9

In statistical analysis, this term is used to signify the
possible extreme observations.

Variants

Deviations

Extremities

Outliers

Question 10

This term is defined as an in-depth examination of the
external and internal environmental factors that are likely to have the
greatest impact on the future of the company.

Competitive
strategy

Strategic
analysis

Market-competitive
pay structure

Regression
analysis

Question 11

What are below-minimum pay range rates referred to as?

Green
circle rates

Red
circle rates

Pay
compression

Market
lag rates

Question 12

Market lag policies are generally set to which quartile in
the salary survey?

2nd

3rd

1st

4th

Question 13

Which of the following are the three measures of dispersion?

Percentile
standard, deviation, arithmetic mean

Arithmetic
mean, percentile, quartile

Standard
deviation, quartile, percentile

Quartile,
arithmetic mean, standard deviation

Question 14

Which sales incentive plan awards sales professionals with
subsistence pay, yet provides them with a strong incentive to excel?

Commission-only
plan

Salary
(base pay. -plus-bonus plan

Commission-plus-draw
plan

Salary
(base pay. -plus-commission plan

Question 15

Which scenario would be appropriate for using a salary-only
plan?

The
salesperson is selling high-priced products with long lead times.

The
company is looking to create competition among its sales staff.

The
salesperson has substantial influence over sales.

The company
is looking to save money due to budget constraints.

Question 16

Companies pursuing a differentiation strategy are most
likely to use which pay level policy?

Market
lead

Market
match

Market
lag

Market
average

Question 17

What represents the relationship between a company’s
valuation of jobs based on job evaluation and the valuation of jobs within the
external market, as assessed by compensation surveys?

Pay
range

Market-competitive
pay structure

Pay
grade

Market
pay line

Question 18

How does an employee’s pay rate compare when the compa-ratio
is more than one?

The
employee’s rate is above the competitive pay rate.

The
employee’s rate is the same as the competitive pay rate.

The
employee’s rate is half as much as the competitive pay rate.

The
employee’s rate is below the competitive pay rate.

Question 19

In which situation is a commission-only plan best suited?

The
sales cycle is long.

Extensive
training or expertise is required.

The
salesperson has little influence over the sales.

The
company is following a lowest-cost strategy.

Question 20

These represent the horizontal dimension of pay structures.

Pay
spreads

Pay
grades

Job
evaluation points

Pay
ranges

Subsection

Question 21

Starting January 1, 2004, eligible individuals are allowed
to establish HASs under which law?

Mental
Health Parity Act

Health
Maintenance Organization Act

HIPAA

Medicare
Prescription Drug, Improvement and Modernization Act

Question 22

Which of the following is an example of a welfare practice?

Workers’
compensation laws

Employee
recreational areas

Overtime
pay

Regular
wages

Question 23

A short-term incentive plan would most likely be used for
which company employee?

A
mid-level manager

A new
employee in training

The
company’s CEO

A
sanitation worker

Question 24

Discretionary benefits are generally divided into which
three categories?

Services,
paid time-off, and protection programs

Intellectual
enhancements, health benefits, and services

Pension
benefits, protection programs, and health benefits

Health
benefits, intellectual enhancements, and paid time-off

Question 25

Who has the authority to define a “year of
service” for pension protection purposes?

The
union

The
chief executive officer

The
U.S. Department of Labor

The
human resources department

Question 26

What specifies the rate at which participants accumulate
benefits?

Sarbanes-Oxley

Combination
procedures

Build-up
rules

Accrual
rules

Question 27

Which type of contingent worker tends to have specialized
skills that are in relatively limited supply in the labor market?

Temporary
employees

Leased
employees

Independent
contractors

Part-time
employees

Question 28

This type of sales incentive compensation plan offers the
sales person a salary and further compensation if they meet a specific,
exceptional sales goal.

Salary-plus-commission

Salary-plus-bonus

Salary-plus
graduated commission

Salary-plus-draw

Question 29

Which of the following is a feature of short-term disability
plans?

Waiting
period

Partial
disabilities inclusion

Preexisting
conditions

Inclusion
provisions

Subsection

Question 30

In a company wanted to hire contingent workers as a way to
screen workers for possible full-time employment, which type of worker would
the company likely employ?

Temporary

Consultants

Freelance

Leased

Question 31

This Medicare Plan was established with the passage of the
Balanced Budget Act of 1997 as an alternative to the original program (parts A
& B).

Medicare
Prescription Drug Program

Medicare
Advantage

Medigap

Medicare
Select

Question 32

MomPop’s General Store can avoid paying workers’
compensation taxes if it keeps its staff to less than how many employees?

12

25

50

100

Question 33

The IRS uses the term “highly compensated
employees” for what purpose?

To
determine the necessity of top-heavy provisions in qualified retirement plans

For
non-discrimination rules in employer-sponsored health insurance benefits

For
non-discrimination rules in employer-sponsored retirement benefits

Fo
determine the necessity of top-heavy provisions in health insurance plans

Question 34

According to the safe harbor rules, leased employees can
make-up no more than what percentage of your company’s total workforce?

20%

10%

33%

25%

Question 35

Under the Family and Medical Leave Act, for Pierre to take
time off to take care of his wife and new child how many hours would he have
had to work in the previous 12 months?

1,250

1,000

1,600

800

Question 36

Chuck broke his leg at work and was told he needed to get
physical rehabilitation. How long, after the incident, does he have to file a
claim?

3 – 6
months

1 – 3
months

2 – 5
years

6 – 24
months

Question 37

To be fully insured under OASDI, Simone would have to work
at least how long?

5 years

12
months

24
months

10
years

Question 38

What is the economic reality test used to check for?

The
solvency of employment agencies

The
financial dependence of independent contractors

The
financial background of new hires

How
close an employee is to being able to retire comfortably

Question 39

Which of the following would be considered an act as part of
a company’s wellness program?

Putting
a soda machine in the break room

Giving
employees free pizza at lunch

Offering
anti-smoking courses

Giving
out cigars to expecting fathers

Question 40

Julio wants to apply for unemployment benefits, how much
will he have to have earned, in the last four quarters, to qualify?

$100
total

$1,000
total

$5,000
total

$10,000
total

Question 41

To be covered by FLSA overtime and minimum wage provisions,
seasonal employees must work for a company that is open how many months in a
year?

11

4

7

12

Question 42

You broke your neck at work. The company called to inform
you that they had to switch your benefits from the short-term disability
account to the long-term account. That means you’ve probably been off work
around how long?

12
months

1 month

6
months

18
months

Question 43

Which of these is NOT covered under workers’ compensation?

Death

Occupational
disease

Injury

Chronic
unemployment

Question 44

A new employee comes into your office and ask you how many
hours a year he has to work to qualify as a year towards his vesting
requirements. What would you tell him?

1,200

800

1,400

1,000

Question 45

What is it called when Tanesha and Jaunita both work
part-time to complete the duties of one full-time position?

Safe
harboring

Dual
staffing

Freelancing

Job
sharing

Question 46

Employer sponsored disability plans supplement legally
required benefits established by which law?

COBRA

NLRA

OASDI

ERISA

Question 47

Which type of contingent worker is most likely to be
involved in a job sharing

arrangement?

Part-time
employees

Leased
employees

Temporary
employees

Independent
contractors

Question 48

In which state would an employee be eligible for an
additional 13 weeks of emergency unemployment insurance (for a total of 33
weeks) under the Unemployment Compensation Act of 2008 due to excessively high
state unemployment?

Alabama

Michigan

North
Dakota

Montana

Question 49

Most contingent workers were employed as what, in 2005?

Independent
contractors

Leased
employees

Temporary
employees

On-call
employees

Question 50

This type of telecommuting involves executives who travel
extensively and maintain control over projects through the use of telephones,
faxes, and e-mail.

Nomadic
executive office

Satellite
work center

Electronic
remote work center

Neighborhood
work center

Question 51

This type of consumer driven health care program allows
employees to carry-over the unused funds still in their account.

Flexible
savings account

Health
savings account

Flexible
spending account

Health
reimbursement account

Question 52

Which type of contingent worker would work for a company on
a long-term basis, presumably on an indefinite basis?

Independent
contractors

Leased
employees

Temporary
employees

Part-time
employees

Subsection

Question 53

The SEC’s Summary Compensation Table contains data covering
how many years?

7

3

5

10

Question 54

The SEC requires compensation information on the CEO and how
many of the highest paid executives?

4

2

7

10

Question 55

Under SEC rules, which of the following is true?

Publicly
held corporations must disclose executive compensation information to
shareholders, but not the public.

Shareholders
may be subject to personal liability for paying excessive executive
compensation.

Board
of director members can sue a corporation for excessive executive compensation.

Board
of director members may be subject to personal liability for paying excessive
executive compensation.

Question 56

Restricted stock generally allows the executives ownership
of the stock after how many years?

3-5

5-10

1-3

20-30

Question 57

If the CEO of a new company asked you how much per employee
she will be taxed by FUTA, what would you tell her?

6.2% of
the first $7,000

6.2% of
the first $10,000

3.5% of
the first $10,000

3.5% of
the first $7,000

Question 58

This type of executive bonus is based on a bonus pool that
is determined by a fixed-formula that is not determined by the executive’s
performance.

Target
plan

Performance-contingent

Discretionary

Predetermined
allocation

Question 59

When he became CEO, Duane was given a stock option that does
not require him to exercise his options in order to receive income. Which plan
is it?

Restricted
stock

Golden
parachute

Stock
appreciation rights

Discount
stock

Question 60

This stock option allows executives to be awarded stocks at
discounted prices, but requires that they pay the taxes on the discounted
amount at the time of the stock grant.

Discount

Statutory

Restricted

Nonstatutory

Subsection

Question 61

What are hardship allowances? What are their features? How
does the U.S. Department of State determine the value of these allowances? Your
response should be 200-250 words in length.

Question 62

Discuss four types of bonuses common in executive
compensation. Your response should be 200-250 words in length.