All Chapters for compensation Final
There will be greater diversity in the labor force
According to the U.S. Bureau of Labor Statistics, what can be said about the current trend in the labor force in the United States?
White non-Hispanics
According to the U.S. Bureau of Labor Statistics, which race will show the slowest growth rate during the period 2012
The federal government invests the money and disburses it back to the states as needed
After states have paid into the central unemployment tax fund, what happens to the money?
Most CEOs who are hired from within make more money than those who are recruited from outside the company
All of the following are true of the ethical considerations regarding executive pay EXCEPT:
Has technical or nontechnical skills
All of the following factors would be influential in determining benefit preferences for employees EXCEPT whether the employee ________.
Has the title and authority of an officer
An officer in an organization is someone who _________.
60
An employer-sponsored retirement plan is considered top-heavy when the accrued benefits of key employees exceed ________ percent of the accrued benefits of all employees.
CEO
Based on the criteria for key employees, which of the following positions would be considered a key employee?
Allows employees to continue with their medical coverage through their employer temporarily
COBRA was designed to ________.
The percentage of the covered expense that the insured person will pay
Coinsurance refers to ________.
Financial condition of the company
Compensation consultants determine executive pay based on a strategic analysis of internal and external factors of an organization. The most important internal factor in determining executive compensation is the ________.
The public image of the consulting firm
Due to a potential conflict of interest, what is the primary consideration for executive consulting firms when suggesting executive pay?
To recognize their pursuit of competitive strategy goals
Executives are awarded short-term incentive compensation. What is the reason for giving short-term incentive compensation to executives?
5
Executives must have ________ percent of ownership in a firm before they are classified as a highly compensated employee by the Internal Revenue Code (IRC).
Help employees work without being distracted by personal matters
Flex work schedules are best for companies that want to promote differentiation strategies. This is because flex schedules ________.
Paid time-off benefits
Flex workweek schedules have the greatest impact on ________.
Modify their work schedules within the limits set by the employer
Flextime schedules allow workers to ________.
Ability to patriciate in an employee retirement program
For employees who participate in job sharing, which of the following is a likely benefit?
Reducing employee training costs
From an employer's perspective, job sharing is likely to result in ________.
With less bargaining power due to a greater supply of workers
Higher rates of unemployment after a recession leave employees ________.
Gains in real compensation have been substantially less than gains in productivity
Historically, after each recession, what has been true regarding productivity and real compensation?
They both have out-of-pocket maximum limits
How are HMOs and fee-for-service plans the same?
Subsistence payments gave unemployed individuals consumption ability to keep economy afloat
How did providing subsistence payments to those who were unemployed or injured help boost the U.S. economy, especially after the Great Depression?
Through granting stock and stock options
How do companies create an ownership interest for an executive?
When compensation expenditure is greater than quantity and quality of labor output
How do companies know when compensation expenditures become excessive?
Greater workplace productivity
How do employers benefit from compressed workweeks?
Executives do not pay any taxes until they sell their stock, and when they do sell, the tax rates are lower than their income tax
How do executives receive an income tax benefit by participating in incentive stock option plans?
Purchase their own insurance
If employees do not sign on to receive insurance from their employers, what are they required to do per the PPACA of 2010?
Contribute to Medicare and OASDI at a higher tax rate
If you are self-employed, what does the Self-Employment Contributions Act (SECA) require you to do?
Weekly
Individuals who meet the eligibility criteria for unemployment benefits receive ________ benefits.
35
Involuntary part-time employees work fewer than ________ hours per week.
Two or more part-time employees perform a single full-time job
Job sharing at work is an arrangement where ________
Malemployment
John has an MBA in finance but is currently working as an administrative assistant at $15 an hour. According to labor terminology, John's employment status can best be described as ________.
Food
Leasing employees to a client company is common in which type of industry?
A phantom stock plan
Miranda, the CEO of TVX Enterprises, has a compensation arrangement in which the TVX board of directors promises to pay her a bonus in the form of the equivalent of either the value of TVX shares or the increase in that value over a period of time. Which term refers to Miranda's compensation arrangement?
A positive return or investment
Offering relevant benefits to employees is important for a company because doing so can lead to ________.
When group think alike and have mistaken solutions for existing problems
One of the advantages of hiring contingent workers is that it prevents groupthink from occurring in the workplace. Which of the following best describes groupthink?
Employers want to increase their profits after a recession by lowering wages
One of the reasons given for the greater compensation
Be monitored more closely
One of the unintended consequences of raising the overtime pay threshold for employees could be that employees will ________.
Are 21 years of age or older; 1,000 hours logged in a 12-month period
Part-time employees are eligible for retirement benefits if they ________ and have________.
Compressed workweek schedule
Sonia works 40 hours each week at a publishing company. She works Monday through Thursday from 8:00 a.m. until 6:00 p.m. Which term best describes Sonia's work arrangement?
The gain in company performance
Stock compensation plans generally increase the ownership interest of an executive. What increases the value of a stock?
Legally accountable to the temporary employment agency that hired them
Technically, when contingent workers are placed in an organization, they are ________.
Fill a need during peak times
Temporary workers are primarily hired by companies to ________.
Annual base pay and bonuses
The current executive core compensation consists of ________.
Workers' compensation
The dual employer doctrine law states that temporary workers have a right to _________
Align the executive's and shareholders' interests in the long run
The idea behind deferred compensation for an executive is to ________.
Provide subsistence income to all beneficiaries regardless of job performance
The purpose of giving benefits to employees is to ________.
A company's profits
The total bonus pool is considered when using the predetermined allocation bonus for an executive. What is the key factor that determines the size of the total bonus pool?
Employees who want to work full-time must work part-tome due to poor economy
Underemployment occurs when ________.
Are acceptable, because they raise the productivity of employees, which makes the unions stronger
Unions in the public sector feel that flex schedules ________.
102 percent of the cost of the coverage of the plan
Up to what percentage can an employer charge COBRA beneficiaries a premium for continuation coverage?
Reduced GDP and increased unemployment
What are the main indicators of an economic recession?
Monitor their reasons for terminating employees
What can employers do to contain unemployment insurance costs?
Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost
What change occurred with the passing of the PPACA?
Prices of goods and services could increase as minimum wage increases
What do many economists assert could be the result of a minimum wage hike for the economy?
State and local governments and not-for-profit companies
What entities are typically exempt from FUTA?
For HRAs, employers make the contributions, but in FSAs they do not
What is a key difference between a health reimbursement account (HRA) and a flexible spending account (FSA)?
For injuries and accidents that occurs on the job, employers must assume the costs
What is a key principle of workers' compensation?
An employee must use the accumulated money n the account by a specific time or it will be lost
What is a notable drawback to flexible spending accounts (FSAs)?
The Chinese government has been increasing the minimum wage rate
What is the current trend in terms of wage rates in China?
Whether the worker is financially dependent on an employer
What is the focus of the economic realities test for independent contractors?
Predetermined allocation bonuses are fixed; target bonuses are not.
What is the key difference between target plan bonus and predetermined allocation bonus?
The way each type of plan finances the benefits
What is the main difference between insurance plans offered by insurance companies and self-funded insurance plans?
Underemployed workers generally work part-time, and employers provide little training to part-time employees
What is the most likely reason that underemployed workers will have low future earnings?
Unions generally do not support contingent work and flex work schedules
What is the overall view of labor unions regarding companies' use of contingent workers and flex schedules?
When the benefits fulfill the needs and preference of employees
What makes employees more likely to endorse employer-sponsored benefits?
Industrial accidents and occupational illnesses among workers
What was a common occurrence during the early twentieth century that led to workers' compensation insurance?
Preventing families from becoming financially overwhelmed once unemployed
What was the motivation behind the Social Security Act?
Shareholders
When considering executive compensation, boards of directors are theoretically representing the interests of ________.
Benefits
When faced with higher employment costs due to an increase in the minimum wage, it is possible that many firms would most likely cut ________, which is a significant part of total compensation.
Executives receive pay for nonperformance and are given generous amounts to leave the company.
When referring to executive compensation, what is mean by the term pay-for-failure?
Internal Revenue Code
Which authority provides the criteria for defining an executive?
Voluntary part-time employees
Which group of contingent workers chooses to work fewer than 35 hours per regularly scheduled workweek?
The FLSA's minimum wage and overtime provisions do not apply to some seasonal workers
Which is true of seasonal workers?
The mean hourly wage rate of underemployed workers is less than the mean wage rate of those who are not underemployed
Which is true of the wage rates of underemployed workers?
U.S. CEOs make 300 percent more than non-U.S. CEOs
Which is true when comparing non-U.S. CEOs with U.S. CEOs?
China's one-child policy restricted population growth and led to an aging population
Which of the following best explains the reason for labor shortages in China?
Executives make decisions in their own self-interests
Which of the following describes the agency problem?
China
Which of the following developing Asian economies has the highest pay rate?
The labor force participation rate for younger workers is expected to increase
Which of the following is NOT a labor force trend projected for the future?
Fee-for-service plans have no pre-existing condition clause
Which of the following is a stipulation for fee-for-service plans?
Labor unions see the practice of contingent employees as undermining their efforts to secure high wages and job security for their members
Which of the following is the most accurate description of why labor union opposition to contingent employees is unlikely to change in the near future?
Younger workers need more quarters of coverage because of their young age and inexperience
Which of the following statements about coverage for disability benefits is FALSE?
Retirement benefits of today's retirees are funded by the current workforce and their employers
Which of the following statements about the Social Security system is true?
Flexible work schedules can reduce productivity
Which of the following statements is FALSE regarding flexible work schedules?
Definitive Proxy Statement
Which of the following would contain detailed information on the compensation of a firm's CEO and Named Executive Officers?
Temporary agency fees are based on a percentage of a placement's pay rate
Which statement about temporary employment agencies is true?
For most executives, annual base pay represents a small part of their total compensation
Which statement about the annual base pay for an executive is true?
It is hard to predict how employers would react to higher thresholds for overtime pay
Which statement is true of the consequences of a higher threshold for overtime pay for employees?
Academic research is not decisive regarding a connection between executive compensation and company performance
Which statement regarding executive compensation is true?
Companies with fewer than 20 employees, church plans, and plans maintained by the U.S. government
Who is exempt from COBRA?
Higher wages create a consumer-demand based economy, rather than an export-centered economy
Why are Chinese policy makers supportive of higher wages?
Contingent workers tend to threaten members' job security
Why are contingent workers perceived as a threat by most labor unions?
Escalating cost increases in workers' compensation
Why are several state legislatures considering integrating employer-sponsored medical insurance and workers' compensation programs?
Labor is less costly in China
Why have many U.S. companies in recent years moved their manufacturing facilities to China?
Underemployment means low wages in the present and low earning in the future
Why is underemployment a potential concern for an economic recovery?
6.2 percent, $7,000
With regard to FUTA, the amount that an employer contributes is equal to ________ of the first ________ earned by each employee.
Telecommuting
Zachary has a full-time position with an accounting firm. Zachary works in the firm's office when he needs to attend meetings, but the majority of his work is accomplished in his home office. Which term best describes Zachary's work arrangement?
Economic recession
________ refers to a general slowdown in economic activity.