A phantom stock plan is an arrangement whereby executives receive a bonus that is equivalent to either the value of c

Company stock shares are the main form of executives’ deferred compensation.

1
After the recent merger of ABC and XYZ Airlines, the former CFO of XYZ Airlines, John, lost his e

Golden parachutes
Which of the following is the fundamental purpose of legally required benefits?

social insurance

these rights provide employees

stock option

Ensuring the financial solvency of individuals during periods of temporary unemployment and following wo
following?
promote the well-being of the economy
Ensuring the financial solvency of individuals during periods of temporary unemployment and following wo
following?
promote the well-being of the economy

Which of the following is the fundamental purpose of legally required benefits?

social insurance

During the early 20th century, high incidences of industrial accidents and occupational illnesses prompted

workers' compensation

The first 4 quarters of the last 5 completed calendar quarters in the previous year is the base period for wh
unemployment insurance
To be fully insured under the OASDI (old age, survivors, and disability insurance tax) retirement benefit, an
long?
10 years
Samuel's full retirement age is 65 years old; and his monthly benefit at that age is $1,000. According to the
program, what will Samuel's monthly benefit be if he decides to take retirement as early as age 63?
less than $1,000 but greater than $0

In 2022, how old will Cary have to be to receive full Social Security benefits?
67
To receive OASDI disability benefits, Sung Lee's disability would have to be expected to last at least how l
12 months

How is Medicare Part A financed?

payroll taxes paid by both employers and employees

Which of the following is covered by Medicare Part A?

A) inpatient hospital care

B) IV drugs

C) ambulance

D) outpatient care
inpatient hospital care
Compared to the Federal Insurance Contributions Act (FICA) rate, the Self-Employment Contributions Act
amounts?
A equal
B half as much
C three times as much
D twice as much
twice as much
Patient Protection and Affordable Care Act (PPACA) has mandated that the "donut hole" which is the gap
must decrease each year until it reaches no more than which of the following?
A) 10 percent of the prescription drug medication cost

B) 15 percent of the prescription drug medication cost

C) 20 percent of the prescription drug medication cost

D) 25 percent of the prescription drug medication cost

25 percent of the prescription drug medication cost
To be eligible for unemployment insurance benefits, an individual must meet which of the following require

A) has been employed for at least 5 years

B) has not voluntarily changed employers within a 3-year period

C) has not been terminated because of gross violations of workplace conduct

D) has been eligible to receive Medicare benefits for at least 10 years

has not been terminated because of gross violations of workplace conduct
Under the Family and Medical Leave Act, how many hours would Pierre have had to work in the previous 1
care for his wife and new child?
800
1250
1600
1000
1250
The ________ is the minimum period of time an individual must be employed before
becoming eligible to receive unemployment insurance under the Social Security Act of 1935.
base period
Both employers and employees finance Medicare Part A benefits through payroll taxes of ________ perce
0.0145
What is coinsurance?

A) Both parents have employer-sponsored insurance coverage for their children.

B) Two insurance companies combine to offer group insurance coverage.

C) An employee pays all out-of- pocket expenses before the insurance takes effect.

D) The insured pays a percentage of covered expenses.

The insured pays a percentage of covered expenses.
Which approach to providing health care makes the most sense when a company's financial burden of cov
the cost to subscribe to an insurance company for coverage?
A managed care
B commercial insurance
C consumer-driven health care
D self-funding
self funding
What is another name for health maintenance organizations (HMOs)?
A prepaid medical services
B inpatient medical services
C outpatient medical services
D on-call medical services
prepaid medical services
How often will Jill receive an unemployment check?
weekly
In which plan do employees possess the option to receive care from health care providers outside the desi
the choice?
A) fee-for- service plans

B) preferred provider organizations

C) HMOs

D) point-of- service plans

point-of- service plans
Why do health reimbursement accounts (HRAs) appeal to employees with low salaries or
hourly wages?

A) The contribution of employees is on a pretax basis.

B) Employees have the option not to contribute to an HRA.

C) Employees forfeit unused balances at the end of a year.

D) HRAs permit employees to carry unused balances from year to year.

HRAs permit employees to carry unused balances from year to year.
Which of the following refers to payments an individual makes as a condition of receiving medical services
A copayments
B deductible
C coinsurance
D premium
copayments
Consumer driven health care strives to achieve which of the following objective?

A) provide employees with a list of acceptable primary care physicians

B) provide employees with greater choices while also containing costs

C) increase the cost of health insurance

D) maintain low copayments and coinsurance amounts
provide employees with greater choices while also containing costs
This type of account does not permit employees to carry over any remaining balance from year to year.
A flexible spending account
B flexible savings account
C health reimbursement account
D health savings account
flexible spending account
Jose invested $2,000 in pre-tax income into this healthcare plan but lost the $780 unspent balance remain
was it?
A health savings account
B fee-for service plan
C flexible spending account
D health reimbursement arrangement
flexible spending account
Starting January 1, 2004, eligible individuals are allowed to establish Health Savings Account (HSA)s unde

A) Health Maintenance Organization Act

B) Mental Health Parity Act

C) Medicare Prescription Drug, Improvement and Modernization Act

D) HIPAA
Medicare Prescription Drug, Improvement and Modernization Act
________ physicians determine when patients need the care of specialists and help to control
costs by reducing the number of unnecessary visits to specialists.
primary care
________ accounts allow employees to pay for specified health care costs not covered by an employer's in
flexible spending
Mia has Parkinson's disease but is on an insurance plan that saves her from having to make frequent visits
________ drug plan.
mail order
Approximately ________ percent of Americans experience some form of mental illness at least once durin
20
Patient Protection and Affordable Care Act (PPACA) distinguishes between health plans that existed prior
those that come into existence afterward. Individual and group health plans already in existence prior to en
grandfathered
A health insurance plan would lose its grandfathered status if it were to change ________.
carriers (health insurance company)
________ requires employers to offer affordable health insurance to employees.
Patient Protection and Affordable Care Act of 2010
What is the maximum amount that companies are permitted to charge COBRA beneficiaries?

A) 102 percent of all employees' annual pay

B) 102 percent of the employee's annual pay

C) 102 percent of the cost of health insurance to the beneficiary under the employer's plan

D) 102 percent of the federal poverty guidelines

102 percent of the cost of health insurance to the beneficiary under the employer's plan
Under which law must former employees be given the choice to continue their coverage, as well as covera
18 months?
A) Health Maintenance Act

B) Patient Protection and Affordable Care Act

C) Consolidated Omnibus Budget Reconciliation Act

D) Employee Retirement Income Security Act

Consolidated Omnibus Budget Reconciliation Act
________ protects the transfer, disclosure, and use of health care information.
HIPAA (Health Insurance Portability and Accountability Act)
Which of the following type of program can help reduce workers' compensation claims?

A) COBRA coverage

B) wellness

C) workplace safety

D) employee assistance
workplace safety
Managing staffing levels to avoid layoffs due to poor business conditions can help control which type of be
A Medicare Part A coverage
B unemployment insurance
C Social Security disability coverage
D health care continuation coverage
unemployment insurance
Which strategy could help contain workers' compensation costs?

A) implementing health promotion programs

B) raising employees' share of health insurance costs

C) eliminating probationary waiting periods

D) requiring that employees purchase and appropriately use safety gear

implementing health promotion programs
Which type of plan appeared as one of the first discretionary benefits practices?
retirement plans
Which government action contributed to the use of welfare benefits?
wage freezes
Which of the following contributed to the use of flexible benefits plans?
greater workforce diversity
Which of the following benefits was previously offered on a discretionary basis, but, is now mandatory?
health insurance
In response to government-imposed wage freezes, many companies began offering ________ as an altern
work benefits.
welfare benefits
Which of the following is a commonly used employer-sponsored retirement plan design?
defined contribution
You broke your neck at work. The company called to inform you that they had to switch your benefits from
term disability account. Based on this decision, how long have you been off work?
at least 3 to 6 months
9) These represent a series of payments for the life of the participant and beneficiary.
annuities
10) A 401(k) plan is which of the following types of retirement benefits?
A) defined contribution
11) What type of pension plan commonly includes profit-sharing plans, stock bonus plans, and employee s
B) defined contribution
12) Which of the following is the most common type of life insurance policy offered by companies?
B) term life
13) Which of the following is associated with Roth 401(k) plans?
A) Employees pay taxes on their contribution.
_x000C_15) The XYZ Company provides a program for its employees who need help dealing with the effe
can offer this kind of service through which of the following programs?
B) employee assistance program
16) In 2014, approximately what percentages of private-sector employees and government employees, res
C) 54 percent, 74 percent
17) Due to a recent merger with another major airline, ABC Airlines decided to lay off some of its employee
teach job search and interviewing techniques to those laid off employees. Which kind of service was provid
D) outplacement assistance
_x000C_18) Outplacement assistance programs are best suited for which condition?
B) mergers and acquisitions
19) The XYZ Company tries to influence employee food choices by stocking vending machines with l healt
stress reduction techniques. Which kind of discretionary benefit program does this company sponsor?
C) wellness program
20) Which of the following would be considered part of a company's wellness program?
C) offering anti-smoking courses
21) An ________ refers to the minimum amount of time that an employee must wait after becoming disable
elimination period
_x000C_22) IRS guidelines define ________ plans as "defined benefit plans that define benefits for each e
employee's hypothetical account balance."
cash balance
23) Retirement programs, or ________, provide income in the form of an annuity to employees and their b
retirement.
defined benefits
24) ________ help bring employees to the workplace and back home again.
Transportation services
25) ________ are career and personal programs designed to develop the job-hunting skills and strategies
Outplacement assistance
26) 401(k) and 403(b) plans are examples of ________ plans.
defined contribution
30) Which of the following laws permit employers to automatically enroll employees in a defined contributio
C) Pension Protection Act
31) Under a cliff vesting arrangement, after how many years must full vesting rights be granted?
B) 3
32) Which set of rules prohibit employers from discriminating in favor of highly compensated employees in
benefits, rights, or plan features?
C) nondiscrimination rules
33) Which of the following do qualified plans provide?
B) substantial tax breaks to employers and employees
34) Which of the following is NOT a provision of the Employee Retirement Income Security Act?
C) employer matching contributions
35) The ________ is the U.S. tax code.
Internal Revenue Code
36) ________ rights refer to nonforfeitable rights to retirement benefits.
Vesting
_x000C_37) Effective employee benefits communications programs can help reduce which of the following
D)
38)an entitlement
Mary works atmentality
a pharmaceutical company as a customer service representative. Her employer allows h
on top of preestablished sets of benefits, such as medical insurance and term life insurance. The company
which
D) coresheplusdecided
option to purchase dental and vision insurance. This pharmaceutical company uses what kind
39) Since the costs of benefits has risen so dramatically in recent years, the majority of the companies dec
which of the following methods?
B) contributory financing
_x000C_40) Under which type of plan may employees exercise the option of trading extra benefits credits
B) core plus option plans
41) Which of the following is rationale to apply a probationary period prior to permitting participation in an e
A) Companies view such periods as an opportunity to ensure that they have made sound hiring decisions.
42) The tax advantage afforded companies from offering particular discretionary benefits has strategic valu
A) It translates into cost savings to companies.
_x000C_43) Which of the following could undermine competitive advantage?
C) offering employee benefits as an entitlement
44) When employees take advantage of ________ benefits, they are more likely to contribute to the strateg
differentiation or cost reduction.
tuition reimbursement
Chapter 10
Chapter 10
1) Ensuring the financial solvency of individuals during periods of temporary unemployment and following w
following?
B) promote the well-being of the economy
2) Which of the following is the fundamental purpose of legally required benefits?
C) social insurance
3) During the early 20th century, high incidences of industrial accidents and occupational illnesses prompte
D) workers' compensation
_x000C_4) The first 4 quarters of the last 5 completed calendar quarters in the previous year is the base p
C) unemployment insurance
5) To be fully insured under the OASDI retirement benefit, an employee would have to work at least how lo
C) 10 years
6) Samuel's full retirement age is 65 years old; and his monthly benefit at that age is $1,000. According to
program, what will Samuel's monthly benefit be if he decides to take retirement as early as age 63?
C) less than $1,000 but greater than $0
7) In 2022, how old will Cary have to be to receive full Social Security benefits?
D) 67
8) To receive OASDI disability benefits, Sung Lee's disability would have to be expected to last at least how
B) 12 months
9) How is Medicare Part A financed?
C) payroll taxes paid by both employers and employees
10) Which of the following is covered by Medicare Part A?
A) inpatient hospital care
11) Compared to the FICA rate, the SECA tax rate is which of the following amounts?
D) twice as much
_x000C_12) PPACA has mandated that the "donut hole," which is the gap in Medicare Part D prescription
it reaches no more than which of the following?
D) 25 percent of the prescription drug medication cost
13) To be eligible for unemployment insurance benefits, an individual must meet which of the following req
C) has not been terminated because of gross violations of workplace conduct
14) Under the Family and Medical Leave Act, how many hours would Pierre have had to work in the previo
care for his wife and new child?
B) 1,250
15) The ________ is the minimum period of time an individual must be employed before becoming eligible
Social Security Act of 1935.
base period
_x000C_16) Both employers and employees finance Medicare Part A benefits through payroll taxes of ___
Answer: 1.45%
20) What is coinsurance?
D) The insured pays a percentage of covered expenses.
21) Which approach to providing health care makes the most sense when a company's financial burden of
than the cost to subscribe to an insurance company for coverage?
D) self-
funding
22) What is another name for health maintenance organizations (HMOs)?
B) prepaid medical services
23) How often will Jill receive an unemployment check?
B) weekly
24) In which plan do employees possess the option to receive care from health care providers outside the
for the choice?
D) point-of-service plans
_x000C_25) Why do health reimbursement accounts (HRAs) appeal to employees with low salaries or hou
D) HRAs permit employees to carry unused balances from year to year.
26) Which of the following refers to payments an individual makes as a condition of receiving medical serv
copayments
27) Consumer driven health care strives to achieve which of the following objective?
B) provide employees with greater choices while also containing costs
_x000C_28) This type of account does not permit employees to carry over any remaining balance from yea
C) flexible spending account
29) Jose invested $2,000 in pre-tax income into this healthcare plan but lost the $780 unspent balance rem
was it?
B) flexible spending account
30) Starting January 1, 2004, eligible individuals are allowed to establish HSAs under which law?
C) Medicare Prescription Drug, Improvement and Modernization Act
31) ________ physicians determine when patients need the care of specialists and help to control costs by
specialists.
Primary
care
32) ________ accounts allow employees to pay for specified health care costs not covered by an employe
: Flexible spending
33) Mia has Parkinson's disease but is on an insurance plan that saves her from having to make frequent v
________ drug plan.
mail
order
34) Approximately ________ percent of Americans experience some form of mental illness at least once d
0.2
35) PPACA distinguishes between health plans that existed prior to the March 23, 2010, enactment date a
Individual and group health plans already in existence prior to enactment are referred to as ________ plan
grandfathered
36) A health insurance plan would lose its grandfathered status if it were to change ________.
carriers (health insurance company)
_x000C_37) ________ requires employers to offer affordable health insurance to employees.
: Patient Protection and Affordable Care Act of 2010
39) What is the maximum amount that companies are permitted to charge COBRA beneficiaries?
C) 102 percent of the cost of health insurance to the beneficiary under the employer's plan
_x000C_40) Under which law must former employees be given the choice to continue their coverage, as w
dependents, for up to 18 months?
C) Consolidated Omnibus Budget Reconciliation Act
41) ________ protects the transfer, disclosure, and use of health care information.
Health Insurance Portability and Accountability Act (HIPAA)
42) Which of the following type of program can help reduce workers' compensation claims?
C) workplace safety
43) Managing staffing levels to avoid layoffs due to poor business conditions can help control which type o
A) unemployment insurance
_x000C_44) Which strategy could help contain workers' compensation costs?
A) implementing health promotion programs
Chapter 11
Chapter 11
1) In theory, the CEO hires the consultant to perform an objective analysis of the company's executive pay
recommendations the consultant feels are appropriate; however, in practice, which tends to be the case?
D) This relationship has the potential to promote a conflict of interest.
2) Which of the following describes CEO compensation that is deemed ineffective?
B) pay-for-nonperformance
3) Pertaining to CEO compensation, under classic economic theory, which of the following is true?
A) The price is obtained through negotiations that are at arm's length.
_x000C_4) For which reason does the IRS use the term "key employees"?
C) top-heavy provisions in employer-sponsored qualified retirement plans
5) The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures, Inc., which mean
criteria
B) either(assume thatsalary
an annual the previous
of moreyear
thanwas 2015)?or, in the previous year, a 5% owner or a 1% owner of th
$170,000;
greater than $150,000
6) Which of the following represent formal criteria for defining executive status?
D) key employees and highly compensated employees
7) Which government agency provides the criteria for defining executive status?
C) Internal Revenue Service
8) Which of the following are the two main components of current core compensation?
A) base pay and bonuses
9) Which type of plans provide an executive with ownership stakes in the company through a variety of me
stock purchase plans?
B) equity plans
10) These rights provide employees with an opportunity to purchase stock shares at a designated price or
within a specified period of time.
A) stock option
11) Which of the following is the term used when a company offers stock to its employees?
C) stock grant
12) Which of the following refers to the sale of stock by the stockholder?
C) disposition
13) Which of the following is the difference between the stock price at the time of purchase and the lower s
stock option?
D) capital gains
14) Which of the following are shares of company stock that are awarded to executives at the end of the m
D) restricted stock units
15) As CEO, Duane was granted stock options that do not require him to exercise them to receive income.
A) stock appreciation rights
16) After the recent merger of ABC and XYZ Airlines, the former CFO of XYZ Airlines, John, lost his emplo
executive compensation agreement is customary in such circumstances?
D) golden
17) The XYZparachutes
Co. took back performance-based compensation of $1.2 million from their CEO because of h
eventually lowered the overall value of the XYZ Co. Which of the following compensation agreements allow
million?
B)
18)clawback provisions
The recently appointed CEO of XYZ Inc. uses a luxury summerhouse owned by the company for rest a
to invite important clients before a lucrative business deal. XYZ Inc. also provides a membership to an exc
benefits offered to CEOs are known as which of the following?
B) perquisites
19) ________ bonuses are awarded to executives by boards of directors on an elective basis.
Discretionary
20) Company stock shares are the main form of executives' ________ compensation.
deferred
21) Executives receive ________ as the difference between the stock price at the time of purchase and the
receives the stock option.
capital gains
22) A ________ stock plan is an arrangement whereby executives receive a bonus that is equivalent to eit
increase in that value over time.
phantom
23) ________ provide pay and benefits to executives after a termination that results from a change in own
Golden parachutes
25) Using this executive compensation theory, shareholders negotiate the compensation contracts with the
interests with theirs.
A) agency
_x000C_26) In the end, Yolanda beat Tristen and Michel in a series of competitions among top-level mana
Which compensation theory did the company probably use?
A) tournament
27) Shareholders' interests are represented by a ________, who weigh the pros and cons of top executive
board of directors
28) The actions of executives on behalf of their own self-interest are known as the ________ problem.
agency
29) The concept that individuals evaluate their accomplishments by comparing themselves to similar indivi
social comparison
31) Which organization has as one of its main goals to help prospective investors understand the financial
C) Securities and Exchange Commission
32) Which legally required document reveals detailed information about the compensation of the CEO and
C) definitive proxy statement (DEF 14(A))
33) The SEC requires compensation information about the CEO and how many of the highest paid executi
C) 4
34) Under SEC rules, which of the following is true?
D) Board of director members may be subject to personal liability for paying excessive executive compens
_x000C_35) The SEC's Summary Compensation Table contains data covering how many years?
A) 3
36) The ________ Act of 2002 brought a number of reforms to enhance corporate responsibility, enhance
fraud due to dishonesty in companies such as Enron and Tyco.
Sarbanes-Oxley
37) A provision of the ________ established the say-on-pay practice.
Dodd-Frank Act
39) Which of the following arguments do labor unions use regarding the substantial pay discrepancies betw
A) Discrepancies are socially unjust and promote economic inequality.
_x000C_40) When companies hire new CEOs from other companies, how do they compensate them?
B)
41)substantially more than recently
XYZ Pharmaceuticals individuals who are that
announced promoted to CEO
the clinical from
trials forwithin the company
a cancer drug failed to cure the illne
decrease in the stock value of the company. The company hired a new CEO two years ago when the clinic
Which
C) Each one of the following
company handles is true
this about the
situation compensation of the CEO of XYZ Pharmaceuticals?
differently.
42) What was the median annual earnings for all U.S. civilian workers in 2014?
A) $47,230
_x000C_43) In May 2014, the typical CEO earned approximately how much more annually than fast food c
D) approximately 180 times more
CHAPTER
12
1) A worker, who is considered part-time, works less than how many hours per week?
B) 35
2) Which of the following is the arrangement where Tanesha and Jaunita both work part-time to complete t
A) job sharing
3) Who is most likely to be involved in a job sharing arrangement?
A) part-time employees
_x000C_4) If a company wanted to hire contingent workers as a way to screen for possible full-time emplo
company likely employ?
B) temporary
5) Which type of contingent worker would work for a company on a long-term basis, presumably on an inde
C) leased employees
6) ARAMARK, a company which provides cafeteria service workers to a client company, is an example of
B) leased employees
7) John has agreed to teach a statistics course on an adjunct basis while the professor who regularly teach
represents which of the following?
A) independent contractor
8) ________ have full-time jobs and plan on having long-term relationships with their employers.
Core employees
9) ________ part-time employees work fewer than 35 hours per week because they are unable to find full-
Involuntary
10) A special kind of part-time employment agreement, whereby two or more part-time employees perform
job sharing
11) With ________ arrangements, temporary employees generally do not work for more than one year, an
workers' legal employers.
direct hire
13) Who is responsible for compensating on-call employees?
B) hiring company
14) Temporary employment agencies are responsible for complying with all employment legislation, excep

C)
workers'
compen
sation
_x000C_15) Ashley was working as a part-time employee in a private company and she received employe
off. Under which act could she choose to continue receiving employer-sponsored health care insurance co
A) Consolidated Omnibus Budget Reconciliation Act
16) For part-time employees to be eligible to be in a company's retirement plan, which two qualifications m
B) age 21 or older and worked 1000 hours in a year of service
17) How many days will Jamal have to work to complete a "year of service"?
A) 125
18) Which organization has the authority to define a "year of service" for pension protection purposes?
D) U.S. Department of Labor
19) How many months in a year must seasonal employees work to qualify for protection under the FLSA o
B) 7
20) Safe harbor rules limit the number of leased employees up to which percentage of a company's total w
A) 20%
21) The U.S. Bureau of Labor Statistics does not monitor pay levels for which type of temporary workers?
D) independent contractors
22) What type of test is used to determine if an independent contractor is financially dependent?
C) economic reality
23) The ________ common law doctrine establishes temporary workers' rights to receive workers' compen
dual employer
24) Companies must use the IRC's ________ test to determine whether individuals are employees or inde
right to control
25) When a telecommuting employee works from a remote extension from the employer's office that includ
employee is said to be working at what type of office?
D) satellite work center
26) This type of telecommuting involves executives that travel extensively and maintain control over projec
mail.
C) nomadic executive office
_x000C_27) An employee living in which place would benefit most from telecommuting due to minimizing e
A) Boston
28) Carlos works at XYZ Innovations Inc. as a computer scientist. ________ schedules enable Carlos to w
Compressed workweek
29) ________ allows for an alternative work arrangement in which employees are able to work at home or
Telecommuting

Terms
in this
set (41)
A worker, who is considered part-time, works less than how many hours per week?
35
Which of the following is the arrangement where Tanesha and Jaunita both work part-time to complete the duties of one fu
job sharing
Who is most likely to be involved in a job sharing arrangement?
* leased employees
* part-time employees
* independent contractors
* temporary employees
part time employees
If a company wanted to hire contingent workers as a way to screen for possible full-time employment, which type of worke
temporary
Which type of contingent worker would work for a company on a long-term basis, presumably on an indefinite basis?
temporary employees
part-time employees
leased employees
independent contractors
leased employees
ARAMARK, a company which provides cafeteria service workers to a client company, is an example of the use of which type
leased employees
John has agreed to teach a statistics course on an adjunct basis while the professor who regularly teaches the course is on s
* leased employee
* job sharing
* on-call arrangement
* independent contractor
independent contractor
________ have full-time jobs and plan on having long-term relationships with their
employers.
core employees
________ part-time employees work fewer than 35 hours per week because they are unable to find full-time employment.
involuntary
A special kind of part-time employment agreement, whereby two or more part-time
employees perform a full-time job, is better known as ________.
job sharing
With ________ arrangements, temporary employees generally do not work for more than one year, and the hiring compani
direct hire
Who is responsible for compensating on-call employees?
* government
* independent contractor
* hiring company
* temporary agency
hiring company
Temporary employment agencies are responsible for complying with all employment legislation, except?
A) ADA

B) FLSA

C) workers' compensation

D) ERISA
workers' compensation
Ashley was working as a part-time employee in a private company and she received employer-sponsored health care. She h

A) Consolidated Omnibus Budget Reconciliation Act

B) Emergency Economic Stabilization Act

C) Family and Medical Leave Act

D) Equal Pay Act

Consolidated Omnibus Budget Reconciliation Act
For part-time employees to be eligible to be in a company's retirement plan, which two qualifications must be met?

A) age 21 or older and worked 1500 hours in a year of service

B) age 21 or older and worked 1000 hours in a year of service

C) age 18 or older and worked 2000 hours in a year of service

D) age 18 or older and worked 1500 hours in a year of service

age 21 or older and worked 1000 hours in a year of service
How many days will Jamal have to work to complete a "year of service"?
125
270
185
100
125
Which organization has the authority to define a "year of service" for pension protection purposes?
U.S. Equal Employment Opportunity Commission
U.S. Department of Labor
National Labor Relations Board
U.S. Bureau of Labor Statistics
US Department of Labor
How many months in a year must seasonal employees work to qualify for protection under the FLSA overtime and minimum
12
7
4
11
7
Safe harbor rules limit the number of leased employees up to which percentage of a company's total workforce?
20
The U.S. Bureau of Labor Statistics does not monitor pay levels for which type of temporary workers?
* leased employees
* part-time employees
* independent contractors
* temporary employees
independent contractors
What type of test is used to determine if an independent contractor is financially dependent?
safe harbor
right to control
economic reality
financial dependence
economic reality
The ________ common law doctrine establishes temporary workers' rights to receive workers' compensation.
dual employer
Companies must use the IRC's ________ test to determine whether individuals are employees or independent contractors.
right to control
When a telecommuting employee works from a remote extension from the employer's office that includes a clerical staff an
nomadic work center
neighborhood work center
satellite work center
remote work office
satellite work center
This type of telecommuting involves executives that travel extensively and maintain control over projects through the use o

A) neighborhood work center

B) satellite work center

C) nomadic executive office

D) electronic remote work center

nomadic executive office
An employee living in which place would benefit most from telecommuting due to minimizing expenses and commute time?

A) Boston

B) Oshkosh, Wisconsin

C) rural Alabama

D) Walla Walla, Washington

Boston
Carlos works at XYZ Innovations Inc. as a computer scientist. ________ schedules enable Carlos to work four 10-hour days.
compressed workweek
________ allows for an alternative work arrangement in which employees are able to work at home or at an alternate locati
telecommuting
James works at home 3 days a week and works at his office 2 days a week. His employer provides a computer, modem, and
working condition fringe benefits
Which of the following is a major challenge associated with the implementation of the Fair Labor Standards Act for workers

A) ensuring that the equal pay provision is not violated

B) ensuring that workers are paid the minimum wage

C) ensuring that the child labor provisions are not violated

D) ensuring that overtime pay rates are calculated correctly

ensuring that overtime pay rates are calculated correctly
After working a regular 40-hour workweek in the office, Mary takes her company laptop home and generally spends an hou

A) working condition fringe benefit

B) employee choice

C) on call time

D) employer mandate
employee choice
What employment issue for flexible employees does the Walling v. A.H. Belo Corporation Supreme Court ruling address?
fixed weekly pay
overtime pay
employee benefits
retirement benefits
fixed weekly pay
Most union leaders generally do not support alternative work arrangements based on which of the following two reasons?

A) fewer promotional opportunities and the likelihood of pay reductions

B) threats to job security and fewer promotional opportunities

C) threats to job security and unfair treatment

D) unfair treatment and the likelihood of pay reductions

threats to job security and unfair treatment
In which sector are some unions more likely to support the use of contingent workers?
profit-oriented
non profit organizations
public
private
public
Which of the following is a reason why unions tend not to support telecommuting
arrangements?

A) difficulty monitoring workers while at home

B) accusing workers of not performing their jobs while at home

C) lower travel costs than for workers in attendance at the work facility every day

D) likelihood of telecommuters not receiving merit pay increases

difficulty monitoring workers while at home
Which stakeholder group most strongly opposes the engagement of contingent workers?
unions
Which of the following is a reason for employers to choose to engage contingent workers?

A) to differentiate the value they place between contingent workers and regular full-time workers

B) to avoid hiring regular, full-time workers

C) to withhold all employee benefits

D) to reduce employment costs per hour

to reduce employment costs per hour
Which of the following factors contributes to the short-term costs of engaging contingent workers?

A) Fair Labor Standards Act minimum wage provision

B) downtime while employees are participating in training

C) Fair Labor Standards Act overtime pay provision

downtime while employees are participating in training
Which of the following is a limitation of engaging contingent workers?

A) Contingent workers' productivity, if not employed long enough, rates low.

B) Regular, full-time employees may reduce their productivity.

C) Contingent workers' productivity probably exceeds regular employees' productivity.

D) Productivity differences between contingent workers and regular employees are not evident.
Contingent workers' productivity, if not employed long enough, rates low.
________ occurs when all members of a group agree on mistaken conclusions due to conformity in sharing the same mind-set
groupthink
This type of telecommuting involves executives that travel extensively and maintain control over projects through the use of t
satellite work center
nomadic executive office
electronic remote work center
neighborhood work center
nomadic executive office
to either the value of c In theory, the CEO hires the consultant to perform an objective analysis of the company's executi

this relationship has the potential to promote a conflict of interest

xyz co. took back performance based compensation of 1.2 million form ceo because of his decisio

clawback provisions
, John, lost his e Ensuring the financial solvency of individuals during periods of temporary unemployment and follo

promote the well-being of the economy

 discretionary bonuses Are awarded to executives by boards of directors on an elective basis
1

oyment and following work-related injuries helps to do which of the

 oyment and following work-related injuries helps to do which of the

tional illnesses prompted which of the following benefits?

is the base period for which benefit?

tax) retirement benefit, an employee would have to work at least how

s $1,000. According to the Social Security Administration retirement

s early as age 63?

cted to last at least how long?

oyment Contributions Act (SECA) tax rate is which of the following

ut hole" which is the gap in Medicare Part D prescription drug coverage,

ch of the following requirements?

d to work in the previous 12 months in order for him to take time off to

ore
Act of 1935.

taxes of ________ percent on all earnings.

ct.

y's financial burden of covering employee medical expenses is less than

providers outside the designated network of physicians, paying more for

laries or

eceiving medical services?

nce from year to year.

unspent balance remaining at the end of the year. What type of plan

ngs Account (HSA)s under which law?

elp to control

vered by an employer's insurance plan.

ng to make frequent visits to the pharmacy. She is probably on a

llness at least once during their lifetime.

h plans that existed prior to the March 23, 2010, enactment date and
dy in existence prior to enactment are referred to as ________ plans.
_______.

eneficiaries?
yer's plan

s plan
verage, as well as coverage for their spouses and dependents, for up to

aims?

p control which type of benefits cost?

ut, is now mandatory?
ng ________ as an alternative to motivate employees through greater

design?
switch your benefits from the short-term disability account to the long-
?
iary.

us plans, and employee stock ownership plans?

d by companies?

help dealing with the effects of domestic violence. The XYZ Company

vernment employees, respectively, had access to an EAP?

y off some of its employees. ABC Airlines offers training sessions to
kind of service was provided by this airline?
on?
ding machines with l healthy food. They also offer programs to teach
s company sponsor?
gram?

ait after becoming disabled before disability insurance payments begin.

define benefits for each employee by reference to the amount of the

to employees and their beneficiaries during some or all of their

nting skills and strategies of employees being laid off or terminated.

es in a defined contribution plan?

hts be granted?
mpensated employees in contributions or benefits, availability of

e Security Act?

uce which of the following?

ve. Her employer allows her to choose the set of benefits she will receive
insurance. The company gave her credits equal to 6% of her salary with
company uses what kind of benefits plan?
rity of the companies decided to finance discretionary benefits using

ing extra benefits credits for cash?

mitting participation in an employee benefits plan?

e sound hiring decisions.
benefits has strategic value for which of the following reasons?

to contribute to the strategic imperatives of product or service

mployment and following work-related injuries helps to do which of the

pational illnesses prompted which of the following benefits?

evious year is the base period for which benefit?

ve to work at least how long?

e is $1,000. According to the Social Security Administration retirement
s early as age 63?

xpected to last at least how long?

nts?
dicare Part D prescription drug coverage, must decrease each year until

which of the following requirements?

had to work in the previous 12 months in order for him to take time off to

before becoming eligible to receive unemployment insurance under the

ough payroll taxes of ________ percent on all earnings.

pany's financial burden of covering employee medical expenses is less

are providers outside the designated network of physicians, paying more

es with low salaries or hourly wages?

of receiving medical services?

ve?

maining balance from year to year.

$780 unspent balance remaining at the end of the year. What type of plan

nder which law?

nd help to control costs by reducing the number of unnecessary visits to

ot covered by an employer's insurance plan.

having to make frequent visits to the pharmacy. She is probably on a

ntal illness at least once during their lifetime.

, 2010, enactment date and those that come into existence afterward.
rred to as ________ plans.
ge ________.

employees.

A beneficiaries?
yer's plan
tinue their coverage, as well as coverage for their spouses and

n.

on claims?

help control which type of benefits cost?

company's executive pay package and to make whatever

h tends to be the case?
e?

following is true?

Pictures, Inc., which means that she met which one of the following
owner or a 1% owner of the employer's business whose annual pay was
 tion?
ny through a variety of mechanisms, including stock option plans and

s at a designated price or whenever the stock price increases, usually,

mployees?

purchase and the lower stock price at the time an executive receives the

utives at the end of the mandatory stipulation period?

e them to receive income. Which of the following plans is it?

nes, John, lost his employment in the newly merged airline. Which
m their CEO because of his decision of the buyout of another firm that
ensation agreements allowed the board of directors to take back this $1.2
by the company for rest and relaxation with his family as well as a place
a membership to an exclusive country club to its CEO. These kinds of

lective basis.

ation.
e time of purchase and the lower stock price at the time an executive

us that is equivalent to either the value of company shares or the

ults from a change in ownership or merger.

nsation contracts with the executive in hopes of aligning the executive's

ns among top-level managers to become CEO of National LemGlass.

and cons of top executives' decisions.

e ________ problem.

emselves to similar individuals is based on ________ theory.

understand the financial matters of importance to companies?

pensation of the CEO and named executive officers (NEOs)?

 f the highest paid executives?

ssive executive compensation.

ow many years?
e responsibility, enhance financial disclosures, and combat accounting

ial pay discrepancies between CEOs and non CEOs?

y compensate them?
company
drug failed to cure the illness. This announcement led to a dramatic
years ago when the clinical trials for this drug had already initiated.
armaceuticals?

e annually than fast food cooks?

eek?

rk part-time to complete the duties of one full-time position?

r possible full-time employment, which type of worker would the

is, presumably on an indefinite basis?

mpany, is an example of the use of which type of employees?

essor who regularly teaches the course is on sabbatical. This example

heir employers.

hey are unable to find full-time employment.

-time employees perform a full-time job, is better known as ________.

or more than one year, and the hiring companies are the temporary
oyment legislation, except?

nd she received employer-sponsored health care. She has just been laid
health care insurance coverage?
which two qualifications must be met?

protection purposes?

tection under the FLSA overtime and minimum wage provisions?

ge of a company's total workforce?

e of temporary workers?

lly dependent?

receive workers' compensation.

als are employees or independent contractors.

mployer's office that includes a clerical staff and a full-time manager, that

aintain control over projects through the use of telephones, faxes, and e-

muting due to minimizing expenses and commute time?

edules enable Carlos to work four 10-hour days.

e able to work at home or at an alternate location besides the office.

complete the duties of one full-time position?

oyment, which type of worker would the company likely employ?

on an indefinite basis?

mple of the use of which type of employees?

rly teaches the course is on sabbatical. This example represents which of the following?

o find full-time employment.

year, and the hiring companies are the temporary workers' legal employers.
sponsored health care. She has just been laid off. Under which act could she choose to continue receiving employer-sponsored health c

cations must be met?

e FLSA overtime and minimum wage provisions?

s total workforce?

compensation.

or independent contractors.

hat includes a clerical staff and a full-time manager, that employee is said to be working at what type of office?

ver projects through the use of telephones, faxes, and e-mail.

expenses and commute time?

s to work four 10-hour days.

home or at an alternate location besides the office.

des a computer, modem, and printer for him to use at home. The equipment for his off-site use is an example of ________.

bor Standards Act for workers employed on a flexible basis?

and generally spends an hour or two responding to work e-mails. This is an example of which of the following?

me Court ruling address?

he following two reasons?

y in sharing the same mind-set.
r projects through the use of telephones, faxes, and e-mail.
of the company's executive pay package and to make whatever recommendations the consultant feels are appropria

ceo because of his decision of the buyout that lowered value. which comp agreement allowed them to take it back
y unemployment and following work-related injuries helps to do which of the following?
employer-sponsored health care insurance coverage?
ple of ________.
sultant feels are appropriate; however, in practice, which tends to be the case?

ed them to take it back