MGMT 494 Unit 3 Test (9-12)
What was the median annual earnings for all U.S. civilian workers in 2016?
$49,630
Both employers and employees finance Medicare Part A benefits through payroll taxes of ________ percent on all earnings.
1.45%
Executives must have ________ percent of ownership in a firm before they are classified as a highly compensated employee by the Internal Revenue Code (IRC).
5
How many months in a year must seasonal employees work to qualify for protection under the FLSA overtime and minimum wage provisions?
7
The Internal Revenue Code (IRC) defines highly compensated employees by certain criteria. Which of the following is NOT one of the criteria?
A 20 percent owner in the current or preceding yea
How are HMO and fee-for-service plans similar?
Both have out-of-pocket maximums and coinsurance.
How can employers involve employees in the benefits determination process?
By conducting employee interviews and focus groups
Carlos works at XYZ Innovations Inc. as a computer scientist. ________ schedules enable Carlos to work four 10-hour days.
Compressed workweek
________ have full-time jobs and plan on having long-term relationships with their employers.
Core employees
Under which type of plan may employees exercise the option of trading extra benefits credits for cash?
Core plus option plans
Which of the following would contain detailed information on the compensation of a firm's CEO and Named Executive Officers?
Definitive Proxy Statement
Which of the following arguments do labor unions use regarding the substantial pay discrepancies between CEOs and non-CEOs?
Discrepancies are socially unjust and promote economic inequality.
________ bonuses are awarded to executives by boards of directors on an elective basis.
Discretionary
A provision of the ________ established the say-on-pay practice.
Dodd-Frank Act
Which of the following is associated with Roth 401(k) plans?
Employees pay taxes on their contribution.
What is a short term disadvantage of legally required benefits?
Employers must make substantial financial contributions.
How can employers reduce the costs associated with required benefits?
Employers should try to reduce the chances of workers filing compensation claims.
Why are several state legislatures considering integrating employer-sponsored medical insurance and workers' compensation programs?
Escalating cost increases in workers' compensation
Which of the following is a TRUE statement about executive compensation packages?
Executive compensation emphasizes long-term rewards and deferred compensation over short term rewards.
Which statement about flexible spending accounts (FSAs) is TRUE?
FSAs allow certain benefits (like child care) to be paid with pretax dollars.
What employment issue for flexible employees does the Walling v. A.H. Belo Corporation Supreme Court ruling address?
Fixed weekly pay
________ accounts allow employees to pay for specified health care costs not covered by an employer's insurance plan.
Flexible spending
Leasing employees to a client company is common in which type of industry?
Food
What is a key difference between a health reimbursement account (HRA) and a flexible spending account (FSA)?
For FSAs, employees can make contributions, but in HRAs, they cannot
The Internal Revenue Code (IRC), which is the tax code of the United States, recognizes two groups that play a major role in a company. Which of the following represent these two groups?
Highly compensated employees and key employees
________ part-time employees work fewer than 35 hours per week because they are unable to find full-time employment.
Involuntary
The tax advantage afforded companies from offering particular discretionary benefits has strategic value for which of the following reasons?
It translates into cost savings to companies.
The main reasons unions oppose flexible work schedules and contingent workers center on which two issues?
Job security and inequitable treatment issues
________ requires employers to offer affordable health insurance to employees.
Patient Protection and Affordable Care Act of 2010
Which is true when comparing non-U.S. CEOs with U.S. CEOs?
Pay mix is substantially different among CEOs in various countries.
Which of the following is NOT a stipulation in fee-for-service plans?
Restrictions on choice of health care providers
Which of the following is the most common type of life insurance policy offered by companies?
Term life
After states have paid into the central unemployment tax fund, what happens to the money?
The federal government invests the money and disburses it back to the states as needed.
What brought about the earliest social insurance programs?
The rapid growth of industrialization and the Great Depression
What is a potential cost associated with extensive discretionary benefits programs?
They may also undermine the imperatives of strategic compensation efforts.
Which is TRUE of seasonal workers?
The FLSA's minimum wage and overtime provisions do not apply to some seasonal workers.
How do companies create an ownership interest for an executive?
Through granting stock and stock options
Why would a company provide outplacement assistance to an employee?
To promote a positive image of the company
Why do businesses use integrated paid time off policies, which group together holidays, vacation, sick leave, and personal leave into a single paid time-off policy?
To reduce the number of unscheduled employee absences
Which organization has the authority to define a "year of service" for pension protection purposes?
U.S. Department of Labor
________ rights refer to nonforfeitable rights to retirement benefits.
Vesting
Which of the following statements about coverage for disability benefits is FALSE?
Younger workers need more quarters of coverage because of their young age and inexperience.
For many decades, discretionary benefits were ________.
based on the needs of a homogenous workforce consisting mostly of males
Shareholders' interests are represented by a(n) ________, who weigh the pros and cons of top executives' decisions.
board of directors
One of the key advantages for employers in hiring more contingent workers is that contingent workers ________.
bring new ideas, which leads to creativity and innovation for a company
Executives receive ________ as the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option.
capital gains
Which of the following is the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option?
capital gains
IRS guidelines define ________ plans as "defined benefit plans that define benefits for each employee by reference to the amount of the employee's hypothetical account balance."
cash balance
The XYZ Co. took back performance-based compensation of $1.2 million from their CEO because of his decision of the buyout of another firm that eventually lowered the overall value of the XYZ Co. Which of the following compensation agreements allowed the board of directors to take back this $1.2 million?
clawback provisions
Which of the following refers to payments an individual makes as a condition of receiving medical services?
copayments
Company stocks are the main form of executives' ________ compensation.
deferred
Which of the following is a commonly used employer-sponsored retirement plan design?
defined benefit plan
Retirement programs, or ________, provide income in the form of an annuity to employees and their beneficiaries during some or all of their retirement.
defined benefits
401(k) and 403(b) plans are examples of ________ plans.
defined contribution
Which of the following refers to the sale of stock by the stockholder?
disposition
The XYZ Company provides a program for its employees who need help dealing with the effects of domestic violence. The XYZ Company can offer this kind of service through which of the following programs?
employee assistance program
After working a regular 40-hour workweek in the office, Mary takes her company laptop home and generally spends an hour or two responding to work e-mails. This is an example of which of the following?
employee choice
The Patient Protection and Affordable Care Act of 2010 requires that ________.
employers offer health insurance to their employees, and if individuals do not have insurance from employers, they should get insurance on their own
One of the ways companies can use discretionary benefits is to _________.
encourage certain worker behaviors that have strategic value to the firm
Which of the following is a major challenge associated with the implementation of the Fair Labor Standards Act for workers employed on a flexible basis?
ensuring that overtime pay rates are calculated correctly
Which type of plans provide an executive with ownership stakes in the company through a variety of mechanisms, including stock option plans and stock purchase plans?
equity plans
Generally, companies expect more from part-time salaried employees. One of the ways to reduce the number of hours of work for a part-time employee is to ________.
establish explicit work-related goals and work-hour limits
When designing executive compensation, consultants consider strategic analyses, which are based on ________.
external market context and internal factors
One of the primary reasons companies hire temporary workers is to ________.
fill a need during peak times
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 ________.
financial condition of the company
This type of account does NOT permit employees to carry over any remaining balance from year to year.
flexible spending account
Which of the following benefits was previously offered on a discretionary basis, but, is now mandatory?
health insurance
Flextime schedules allow workers to ________.
modify their work schedules within the limits set by the employer
The recently appointed CEO of XYZ Inc. uses a luxury summerhouse owned by the company for rest and relaxation with his family as well as a place to invite important clients before a lucrative business deal. XYZ Inc. also provides a membership to an exclusive country club to its CEO. These kinds of benefits offered to CEOs are known as which of the following?
perquisites
What is another name for health maintenance organizations (HMOs)?
prepaid medical services
When a telecommuting employee works from a remote extension from the employer's office that includes a clerical staff and a full-time manager, that employee is said to be working at what type of office?
satellite work center
Which of the following do qualified plans provide?
substantial tax breaks to employers and employees
Most union leaders generally do not support alternative work arrangements based on which of the following two reasons?
threats to job security and unfair treatment
Which of the following is a reason for employers to choose to engage contingent workers?
to reduce employment costs per hour
For which reason does the IRS use the term "key employees"?
top-heavy provisions in employer-sponsored qualified retirement plans
In the end, Yolanda beat Tristen and Michel in a series of competitions among top-level managers to become CEO of National LemGlass. Which compensation theory did the company probably use?
tournament
When employees take advantage of ________ benefits, they are more likely to contribute to the strategic imperatives of product or service differentiation or cost reduction.
tuition reimbursement
Compared to the FICA rate, the SECA tax rate is which of the following amounts?
twice as much
Job sharing at work is an arrangement where ________
two or more part-time employees perform a single full-time job
Which government action contributed to the use of welfare benefits?
wage freezes
How often will Jill receive an unemployment check?
weekly
Individuals who meet the eligibility criteria for unemployment benefits receive ________ benefits.
weekly
The XYZ Company tries to influence employee food choices by stocking vending machines with healthy food. They also offer programs to teach stress reduction techniques. Which kind of discretionary benefit program does this company sponsor?
wellness program
A compressed workweek means employees complete their work ________.
within fewer than 5 days in a 5-day workweek
The dual employer common law doctrine law states that temporary workers have a right to _________
workers' compensation
James works at home 3 days a week and works at his office 2 days a week. His employer provides a computer, modem, and printer for him to use at home. The equipment for his off-site use is an example of ________.
working condition fringe benefits
Which of the following type of program can help reduce workers' compensation claims?
workplace safety
Which of the following is a stipulation for fee-for-service plans?
Fee-for-service plans have no preexisting condition clauses.
Under the Family and Medical Leave Act, how many hours would Pierre have had to work in the previous 12 months in order for him to take time off to care for his wife and new child?
1,250
To be fully insured under the OASDI retirement benefit, an employee would have to work at least how long?
10 years
What is the maximum amount that companies are permitted to charge COBRA beneficiaries?
102 percent of the cost of health insurance to the beneficiary under the employer's plan
Up to what percentage can an employer charge COBRA beneficiaries a premium for continuation coverage?
102 percent of the cost of the coverage of the plan
To receive OASDI disability benefits, Sung Lee's disability would have to be expected to last at least how long?
12 months
How many days will Jamal have to work to complete a "year of service"?
125
A health insurance plan would lose its grandfathered status if it were to increase in a copayment by an amount that exceeds medical inflation plus ________.
15% points
How long can individuals have insurance coverage under COBRA?
18 months
Approximately ________ percent of Americans experience some form of mental illness at least once during their lifetime.
20
Safe harbor rules limit the number of leased employees up to which percentage of a company's total workforce?
20%
PPACA has mandated that the "donut hole," which is the gap in Medicare Part D prescription drug coverage, must decrease each year until it reaches no more than which of the following?
25 percent of the prescription drug medication cost
The SEC's Summary Compensation Table contains data covering how many years?
3
Under a cliff vesting arrangement, after how many years must full vesting rights be granted?
3
A cliff vesting schedule requires that an employee be 100 percent vested after ________ years of service.
3 years
A worker, who is considered part-time, works less than how many hours per week?
35
The SEC requires compensation information about the CEO and how many of the highest paid executives?
4
In 2017, approximately what percentages of private-sector employees and government employees, respectively, had access to an EAP?
51 percent, 78 percent
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 disability account. Based on this decision, how long have you been off work?
6 months to life
With regard to FUTA, the amount that an employer contributes is equal to ________ of the first ________ earned by each employee.
6.2 percent; $7,000
Most short-term disability plans pay employees ________.
60-70 percent ofemployees' pretax salary on a monthly or weekly basis
In 2022, how old will Cary have to be to receive full Social Security benefits?
67
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 phantom stock plan
Which statement regarding executive compensation is TRUE?
Academic research is not decisive regarding a connection between executive compensation and company performance.
What is a notable drawback to flexible spending accounts (FSAs)?
An employee must use the accumulated money in the account by a specific time or it will be lost.
Which of the following best describes the role of a key employee in an organization?
An employee who holds a position of substantial responsibility
What is one of the reasons for the significant growth of companies who began offering discretionary benefits to employees even though they were not required to doso?
Because of the favorable tax treatment of the plans and government-imposed wage increase controls
Under SEC rules, which of the following is true?
Board of director failure to comply can lead to hefty monetary penalties.
An employee living in which place would benefit most from telecommuting due to minimizing expenses and commute time?
Boston
A professional consultant can create a conflict of interest when hired by a CEO to determine his or her compensation. In what way can a professional compensation consultant create this conflict?
By conducting an objective analysis of executive compensation of the CEO who hired them.
How has the government encouraged employers to provide retirement benefits to employees since as early as the 1900s?
By giving employers a tax break on the amount paid out as employees' retirement plan payments
In the 1930s, how did unions influence businesses offering discretionary benefits to their employees?
By pushing for the National Labor Relations Act, which legitimized bargaining for benefits
Which statement about designing and planning benefits programs is TRUE?
Companies and union representatives, when appropriate, should determine which benefits are most important for employees.
Which of the following is rationale to apply a probationary period prior to permitting participation in an employee benefits plan?
Companies view such periods as an opportunity to ensure that they have made sound hiring decisions.
Who is exempt from COBRA?
Companies with fewer than 20 employees, church plans, and plans maintained by the U.S. government
All of the following are true of the ethical considerations regarding executive pay EXCEPT:
Compensation consultants are able to justify paying CEOs promoted from within less than those who come from another company because internal candidates aren't as highly qualified.
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?
Compressed workweek schedule
Under which law must former employees be given the choice to continue their coverage, as well as coverage for their spouses and dependents, for up to 18 months?
Consolidated Omnibus Budget Reconciliation Act
Ashley was working as a part-time employee in a private company and she received employer-sponsored health care. She has just been laid off. Under which act could she choose to continue receiving employer-sponsored health care insurance coverage?
Consolidated Omnibus Budget Reconciliation Act (COBRA)
In general, labor unions do not support organizations' use of contingent workers. Which of the following is a common concern of labor unions?
Contingent workers receive lower wages and benefits than core employees.
Which of the following is a limitation of engaging contingent workers?
Contingent workers' productivity, if not employed long enough, rates low.
If you are self-employed, what does the Self-Employment Contributions Act (SECA) require you to do?
Contribute to Medicare and OASDI at a higher tax rate
Since the costs of benefits has risen so dramatically in recent years, the majority of the companies decided to finance discretionary benefits using which of the following methods?
Contributory financing
Mary works at a pharmaceutical company as a customer service representative. Her employer allows her to choose the set of benefits she will receive on top of pre-established sets of benefits, such as medical insurance and term life insurance. The company gave her credits equal to 6% of her salary with which she decided to purchase dental and vision insurance. This pharmaceutical company uses what kind of benefits plan?
Core plus option
XYZ Pharmaceuticals recently announced that the clinical trials for a cancer drug failed to cure the illness. This announcement led to a dramatic decrease in the stock value of the company. The company hired a new CEO two years ago when the clinical trials for this drug had already initiated. Which one of the following is true about the compensation of the CEO of XYZ Pharmaceuticals?
Each company handles this situation differently.
What are the key aspects of vesting?
Employees' contributions to pension plans are always vested and a company is required to give full vesting rights to employer contributions based on a predetermined schedule.
What change occurred with the passing of the PPACA?
Employers are no longer able to purchase insurance plans with lower maximum benefits at a lower cost.
How do executives receive an income tax benefit by participating in incentive stock option plans?
Executives do not pay any taxes until they sell their stock, and when they do sell, the capital gains tax rates are lower than their income tax rates.
Which of the following describes the agency problem?
Executives make decisions in their own self-interest.
When referring to executive compensation, what is meant by the term pay-for-failure?
Executives receive pay for nonperformance and are given generous amounts to leave the company.
How do flexible work schedules help companies pursue the lowest-cost strategy?
Flexible work schedules boost productivity and lower absenteeism, which helps companies cut costs.
Which of the following statements is FALSE regarding flexible work schedules?
Flexible work schedules reduce productivity.
Which of the following is true of flexible work schedules?
Flextime and the compressed work week are the most common types of flexible work schedules.
What is a key principle of workers' compensation?
For injuries and accidents that occur on the job, employers must assume the costs.
Which statement about the annual base pay for an executive is TRUE?
For most executives, annual base pay represents a small part of their total compensation.
________ provide pay and benefits to executives after a termination that results from a change in ownership or merger.
Golden parachutes
________ occurs when all members of a group agree on mistaken conclusions due to conformity in sharing the same mind-set.
Groupthink
Why do health reimbursement accounts (HRAs) appeal to employees with low salaries or hourly wages?
HRAs permit employees to carry unused balances from year to year.
________ protects the transfer, disclosure, and use of health care information.
Health Insurance Portability and Accountability Act (HIPAA)
How do employers benefit from compressed workweeks?
Improve recruitment and retention success
What was a common occurrence during the early twentieth century that led to workers' compensation insurance?
Industrial accidents and occupational illnesses among workers
Under exclusion provisions for short-term disability plans, what kind of disability is almost always excluded?
Injuries that are self-inflicted
The ________ is the U.S. tax code.
Internal Revenue Code
Which authority provides the criteria for defining an executive?
Internal Revenue Code
Which government agency provides the criteria for defining executive status?
Internal Revenue Service
What are the three key laws that have influenced discretionary benefits practices?
Internal Revenue Code, ERISA, and Pension Protection Act of 2006
Starting January 1, 2004, eligible individuals are allowed to establish HSAs under which law?
Medicare Prescription Drug, Improvement and Modernization Act
What can employers do to contain unemployment insurance costs?
Monitor their reasons for terminating employees
With regard to financing programs, what are the three categories from which human resources managers can choose?
Noncontributory programs, contributory programs, and employee-financed programs
The U.S. government uses which time frame basis for overtime pay?
Number of hours worked in a week
________ is/are career and personal programs designed to develop the job-hunting skills and strategies of employees being laid off or terminated.
Outplacement assistance
Which of the following laws permit employers to automatically enroll employees in a defined contribution plan?
Pension Protection Act
Of the following, which is NOT considered one of the four groups of contingent workers?
Permanent employees
Which statement regarding contingent workers is FALSE?
Persons who do not continue their jobs for personal reasons like attending school are still classified as contingent workers.
What was the motivation behind the Social Security Act?
Preventing families from becoming financially overwhelmed once unemployed
________ 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
Under which of the three broad categories for discretionary benefits does disability insurance fall?
Protection programs
What are the three categories of discretionary benefits?
Protection, paid time off, and services
Which of the following statements about the Social Security system is TRUE?
Retirement benefits of today's retirees are funded by the current workforce and their employers.
The ________ Act of 2002 brought a number of reforms to enhance corporate responsibility, enhance financial disclosures, and combat accounting fraud due to dishonesty in companies such as Enron and Tyco.
Sarbanes-Oxley
Which organization has as one of its main goals to help prospective investors understand the financial matters of importance to companies?
Securities and Exchange Commission
Of the following, which is NOT regulated by ERISA (Employee Retirement Income Security Act of 1974)?
Social Security
What are the categories of legally required benefits?
Social Security programs, workers' compensation, unpaid family and medical leave, and health insurance
What entities are typically exempt from FUTA?
State and local governments and not-for-profit companies
All parties involved in employing or hosting contingent workers possess liability under federal and state laws. Of the following, which is NOT a liability under federal and state law?
Stock options and deferred compensation
How did providing subsistence payments to those who were unemployed or injured help boost the U.S. economy, especially after the Great Depression?
Subsistence payments gave unemployed individuals consumption ability to keep the economy afloat.
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?
Telecommuting
________ allows for an alternative work arrangement in which employees are able to work at home or at an alternate location besides the office.
Telecommuting
Which statement about temporary employment agencies is TRUE?
Temporary agency fees are based on a percentage of a placement's pay rate.
Which act was established to regulate the implementation of employee benefits programs, thereby protecting employee benefits rights?
The Employee Retirement Income Security Act of 1974
What is coinsurance?
The insured pays a percentage of covered expenses.
Pertaining to CEO compensation, under classic economic theory, which of the following is true?
The price is obtained through negotiations that are at arm's length.
Due to a potential conflict of interest, what is the primary consideration for executive consulting firms who suggest executive pay when refusing to do other work for management?
The public image of the consulting firm
Which statement is FALSE regarding the "say on pay" provision of the Dodd-Frank Act?
The say on pay provision states that the shareholder vote is a binding vote.
How are HMOs and fee-for-service plans the same?
They both have out-of-pocket maximum limits.
What is an advantage associated with offering discretionary benefits?
They can promote particular employee behaviors that have strategic value.
Which of the following statements is TRUE of core plus option plans?
They extend a preestablished set of benefits, such as medical insurance, as a program core.
In theory, the CEO hires the consultant to perform an objective analysis of the company's executive pay package and to make whatever recommendations the consultant feels are appropriate; however, in practice, which tends to be the case?
This relationship has the potential to promote a conflict of interest.
Executives are awarded short-term incentive compensation. What is the reason for giving short-term incentive compensation to executives?
To reward executives for meeting intermediate performance criteria
________ help bring employees to the workplace and back home again.
Transportation services
What programs did the Social Security Act establish?
Unemployment insurance and old age, Survivor, and disability insurance (OASDI)
What is the overall view of labor unions regarding companies' use of contingent workers and flex schedules?
Unions generally do not support contingent work and flex work schedules.
How are welfare practices defined?
Voluntary benefits paid by the employer that are for the intellectual or social development of the employees
Which group of workers chooses to work fewer than 35 hours per regularly scheduled workweek?
Voluntary part-time employees
In response to government-imposed wage freezes, many companies began offering ________ as an alternative to promote good management and to enhance worker productivity.
Welfare benefits
How do companies know when compensation expenditures become excessive?
When compensation expenditure is greater than quantity and quality of labor output
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?
When groups share the same mind-set regarding issues
What is the focus of the economic realities test for independent contractors?
Whether the worker is financially dependent on the employer
Under noncontributory financing for benefits programs, ________.
a firm assumes total costs for each discretionary benefit
For part-time employees to be eligible to be in a company's retirement plan, which two qualifications must be met?
age 21 or older and worked 1000 hours in a year of service
The actions of executives on behalf of their own self-interest are known as the ________ problem.
agency
Using this executive compensation theory, shareholders delegate control to top executives to represent their ownership interest.
agency
If an employer offers a pension plan, employees must be allowed to participate in pension plans after they have reached ________ and have completed ________ of service.
age 21; 1 year
The idea behind deferred compensation for an executive is to ________.
align the executive's and shareholders' interests in the long term
COBRA was designed to ________.
allow employees to continue with their medical coverage through their employer temporarily
Effective employee benefits communications programs can help reduce which of the following?
an entitlement mentality
The current executive core compensation consists of ________.
annual base pay and bonuses
Boards of directors are usually composed of ________.
approximately 15 members
In May 2016, the typical CEO earned approximately how much more annually than fast food cooks?
approximately 567 times more
Part-time employees are eligible for retirement benefits if they ________ and have________.
are 21 years of age or older; 1,000 hours logged in a 12-month period
Unions in the public sector feel that flex schedules ________.
are acceptable, because they strengthen union bargaining power
Which of the following are the two main components of current core compensation?
base pay and bonuses
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
A Definitive Proxy Statement under section 14A of the SEC deals with the ________.
compensation given to the CEO and the four most highly compensated officers
The Securities Exchange Act of 1934 deals with ________.
corporate financial information and executive compensation practices
A 401(k) plan is which of the following types of retirement benefits?
defined contribution
What type of pension plan commonly includes profit-sharing plans, stock bonus plans, and employee stock ownership plans?
defined contribution
Which legally required document reveals detailed information about the compensation of the CEO and named executive officers (NEOs)?
definitive proxy statement (DEF 14(A))
Which of the following is a reason why unions tend NOT to support telecommuting arrangements?
difficulty monitoring workers while at home
With ________ arrangements, temporary employees generally do not work for more than one year, and the hiring companies are the temporary workers' legal employers.
direct hire
Which of the following factors contributes to the short-term costs of engaging contingent workers?
downtime while employees are participating in training
The ________ common law doctrine establishes temporary workers' rights to receive workers' compensation.
dual employer
What type of test is used to determine if an independent contractor is financially dependent?
economic reality
The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures, Inc., which means that she met which one of the following criteria (assume that the previous year was 2015)?
either an annual salary of more than $170,000; or, in the previous year, a 5% owner or a 1% owner of the employer's business whose annual pay was greater than $150,000
A(n) ________ refers to the minimum amount of time that an employee must wait after becoming disabled before disability insurance payments begin.
elimination period
Which of the following is NOT a provision of the Employee Retirement Income Security Act?
employer matching contributions
Jose invested $2,000 in pre-tax income into this healthcare plan but lost the $780 unspent balance remaining at the end of the year. What type of plan was it?
flexible spending account
Many compensation professionals and board of directors members argue that the trends in executive compensation are necessary ___________________.
for attracting and retaining top executives
Named executive officers (NEOs) are the ________.
four most highly compensated officers after the CEO
After the recent merger of ABC and XYZ Airlines, the former CFO of XYZ Airlines, John, lost his employment in the newly merged airline. Which executive compensation agreement is customary in such circumstances?
golden parachutes
PPACA distinguishes between health plans that existed prior to the March 23, 2010, enactment date and those that come into existence afterward. Individual and group health plans already in existence prior to enactment are referred to as ________ plans.
grandfathered
Which of the following contributed to the use of flexible benefits plans?
greater workforce diversity
Employee assistance programs (EAPs) are established by companies to help employees ________.
handle personal problems that affect job performance
To be eligible for unemployment insurance benefits, an individual must meet which of the following requirements?
has not been terminated because of gross violations of workplace conduct
Flex work schedules are best for companies that want to promote differentiation strategies. This is because flex schedules ________.
help employees work without being distracted by personal matters
Who is responsible for compensating on-call employees?
hiring company
Which strategy could help contain workers' compensation costs?
implementing health promotion programs
If Coca-Cola makes it possible for its executives to buy Coke stock shares in the future at a predetermined price, Coca-Cola is granting the executives a(n) ________.
incentive stock option
John has agreed to teach a statistics course on an adjunct basis while the professor who regularly teaches the course is on sabbatical. This example represents which of the following?
independent contractor
The U.S. Bureau of Labor Statistics does NOT monitor pay levels for which type of temporary workers?
independent contractors
Which of the following is covered by Medicare Part A?
inpatient hospital care
The Pension Benefit Guaranty Corporation (PBGC) was created to _______.
insure retirement income for workers covered under a private-sector defined benefit plan
Unscheduled absenteeism has climbed to its highest levels in the XYZ Company last month. In order to reduce costs, HR professionals in the XYZ Company changed their paid time off policy. This company used to grant each employee 10 vacation days, 5 paid days for sick leave, and 4 days for personal leave. With the new policy, this company combines vacation, sick leave, and personal leave policies into one paid time off policy (i.e., 19 days). The management kept funeral leave as a stand-alone policy. What is the XYZ Company's new policy called?
integrated paid time off
One of the provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) is that _________.
it protects the transfer, disclosure, and use of health care information
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
Which of the following is the arrangement where Tanesha and Juanita both work part-time to complete the duties of one full-time position?
job sharing
Which of the following represent formal criteria for defining executive status?
key employees and highly compensated employees
ARAMARK, a company which provides cafeteria service workers to a client company, is an example of the use of which type of employees?
leased employees
Which type of contingent worker would work for a company on a long-term basis, presumably on an indefinite basis?
leased employees
When temporary workers are placed in an organization, they are ________.
legally accountable to the temporary employment agency that hired them
Samuel's full retirement age is 65 years old; and his monthly benefit at that age is $1,000. According to the Social Security Administration retirement 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
These represent NOT paying a series of payments for the life of the participant and beneficiary.
lump sum distributions
Mia has Parkinson's disease but is on an insurance plan that saves her from having to make frequent visits to the pharmacy. She is probably on a(n) ________ drug plan.
mail order
Outplacement assistance programs are best suited for which condition?
mergers and acquisitions
With performance-based pay, successful performance usually leads to ________.
merit and incentive awards
This type of telecommuting involves executives that travel extensively and maintain control over projects through the use of telephones, faxes, and e-mail.
nomadic executive office
Which set of rules prohibit employers from discriminating in favor of highly compensated employees in contributions or benefits, availability of benefits, rights, or plan features?
nondiscrimination rules
Which of the following would be considered part of a company's wellness program?
offering anti-smoking courses
Which of the following could undermine competitive advantage?
offering employee benefits as an entitlement
Due to a recent merger with another major airline, ABC Airlines decided to lay off some of its employees. ABC Airlines offers training sessions to teach job search and interviewing techniques to those laid off employees. Which kind of service was provided by this airline?
outplacement assistance
Who is most likely to be involved in a job-sharing arrangement?
part-time employees
Which of the following describes CEO compensation that is deemed ineffective?
pay-for-nonperformance
How is Medicare Part A financed?
payroll taxes paid by both employers and employees
Participation requirements are applicable to ________.
pension plans
A(n) ________ stock plan is an arrangement whereby executives receive a bonus that is equivalent to either the value of company shares or the increase in that value over time.
phantom
In which plan do employees possess the option to receive care from health care providers outside the designated network of physicians, paying more for the choice?
point-of-service plans
Ensuring the financial solvency of individuals during periods of temporary unemployment and following work-related injuries helps to do which of the following?
promote the well-being of the economy
The three broad areas in which employers provide discretionary benefits are ________.
protection programs, paid time off, and services
Consumer-driven health care strives to achieve which of the following objectives?
provide employees with greater choices while also containing costs
Under the principle of social adequacy, benefits are designed to _____.
provide subsistence income to all beneficiaries regardless of job performance
In which sector are some unions more likely to support the use of contingent workers?
public
From an employer's perspective, job sharing is likely to result in ________.
reducing employee training costs
Which of the following are shares of company stock that are awarded to executives at the end of the mandatory stipulation period?
restricted stock units
Which type of plan appeared as one of the first discretionary benefits practices?
retirement plans
Companies must use the IRC's ________ test to determine whether individuals are employees or independent contractors.
right to control
Which approach to providing health care makes the most sense when a company's financial burden of covering employee medical expenses is less than the cost to subscribe to an insurance company for coverage?
self-funding
When considering executive compensation, boards of directors are theoretically representing the interests of ________.
shareholders
The concept that individuals evaluate their accomplishments by comparing themselves to similar individuals is based on ________ theory.
social comparison
Which of the following is the fundamental purpose of legally required benefits?
social insurance
As CEO, Duane was granted stock options that do not require him to exercise them to receive income. Which of the following plans is it?
stock appreciation rights
Which of the following is the term used when a company offers stock to its employees?
stock grant
These rights provide employees with an opportunity to purchase stock shares at a designated price or whenever the stock price increases, usually, within a specified period of time.
stock option
When companies hire new CEOs from other companies, how do they compensate them?
substantially more than individuals who are promoted to CEO from within the company
If a company wanted to hire contingent workers as a way to screen for possible full-time employment, which type of worker would the company likely employ?
temporary
Employers base sick leave and vacation time on ________.
the number of hours worked in a month
Coinsurance refers to ________.
the percentage of the covered expense that the insured person will pay
Managing staffing levels to avoid layoffs due to poor business conditions can help control which type of benefits cost?
unemployment insurance
The first 4 quarters of the last 5 completed calendar quarters in the previous year is the base period for which benefit?
unemployment insurance
Which stakeholder group most strongly opposes the engagement of contingent workers?
unions
During the early 20th century, high incidences of industrial accidents and occupational illnesses prompted which of the following benefits?
workers' compensation
Temporary employment agencies are responsible for complying with all employment legislation, except?
workers' compensation