Comp. Ch. 12

Which of the following is not a benefit administration issue? A. Benefit adequacy B. Benefit financing C. Degree of choice among benefits D. Legal defensibility of benefits

A. Benefit adequacy

_____ is/are the primary reason why businesses adopt flexible benefit programs. A. Cost savings B. Increased employee understanding C. Federal requirements under EEO laws D. Maintaining external equity

A. Cost savings

Across five studies ranking preference for benefits,_________ had the lowest average rating. A. Long-term disability B. Sick pay C. Pensions D. Dental insurance

A. Long-term disability

_____ is/are one of the most preferred benefits. A. Stock plans B. Profit sharing C. Shorter working hours D. Early retirement

A. Stock plans

Alternatives to financing benefit plans include all of the following except: A. contributory B. 401K C. noncontributory D. employee financed

B. 401K

_____ is not an example of an approach to customer-driven health care. A. Tiered networks B. Cafeteria plans C. Managed competition D. Full-defined contribution

B. Cafeteria plans

_____ is/are not a method of determining employee benefit preferences. A. Demographic data B. Competitor pay surveys C. Employee surveys D. A cafeteria plan

B. Competitor pay surveys

Which of the following benefits are not mandated by state or federal legislation? A. Workers' compensation B. Pensions C. Social security D. Unemployment insurance

B. Pensions

The typical employee can recall _____ percent of the benefits they receive. A. almost 50 B. less than 15 C. over 30 D. 40

B. less than 15

All of the following are cost containment practices except: A. probationary periods. B. physical exams of all new hires. C. copay. D. seeking competitive bids for benefit delivery.

B. physical exams of all new hires.

In 1959, benefits were approximately _____ percent of payroll and in 2010, the percent was _____. A. 30, 50 B. 20, 38 C. 25, 30 D. 30, 60

C. 25, 30

_____ is the most frequent method of benefit communication. A. An orientation session B. On-line benefits information C. An employee benefit handbook D. A meeting with supervisor

C. An employee benefit handbook

_____ mandates 12 weeks of leave for all workers at companies that employ 50 or more people. A. Health Maintenance Act 1973 B. FLSA 1938 C. FMLA 1993 D. COBRA 1984

C. FMLA 1993

Which of the following is not a disadvantage of flexible benefit programs? A. Administrative burdens and expenses increase. B. Adverse selection. C. New benefits are more difficult to introduce. D. Flexible benefits are subject to nondiscrimination requirements in Section 125 of IRS code.

C. New benefits are more difficult to introduce.

The total cost of employee benefits in the U. S. is _____ dollars. A. two trillion B. one trillion C. four trillion D. one billion

C. four trillion

Which of the following is not a part of the cost-centered approach for deciding to provide a benefit? A. Checking compliance B. Evaluating competitiveness of current benefits C. Examining employee preferences D. Basing benefits on historical costs

D. Basing benefits on historical costs

_____ allows employees who have resigned or were laid off to continue to purchase health insurance under their employer's plan. A. Health Maintenance Act 1973 B. FLSA 1938 C. Tax reforms of 1982, 1986 D. COBRA 1984

D. COBRA 1984

A primary benefits objective of most employers is to: A. obtain employee cooperation in controlling benefit costs. B. increase employee knowledge of benefit costs. C. encourage employee responsibility for their own financial security. D. increase employee understanding of plan objectives.

D. increase employee understanding of plan objectives.

Surveys show that the most highly valued benefit is: A. dental plans. B. a pension. C. paid vacation and holidays. D. medical insurance.

D. medical insurance.

Various studies have found that only two specific benefits curtailed employee turnover: _____ and _____. A. vacation days; dental plans B. profit-sharing plans; life insurance C. retirement benefits; paid vacations D. pensions; medical coverage

D. pensions; medical coverage

The most widely used benefit survey is conducted by: A. the U. S. Chamber of Commerce. B. Watson-Wyatt. C. the Society for Human Resource Management. D. the American Compensation Association.

the U. S. Chamber of Commerce.

The biggest trend in cost-containment is: A. benefit limitations. B. HMO's. C. outsourcing. D. higher deductibles.

C. outsourcing.

The __________ act requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship. A. Patient Protection and Affordable Care Act B. Family and Medical Leave Act C. Health Maintenance Organization Act D. No act requires these actions.

A. Patient Protection and Affordable Care Act

All of the following are advantages of managing benefits via the internet or intranet except: A. employees have fewer interactions with HR staff. B. benefit handbook cost is minimized. C. benefit transactions costs are reduced. D. fewer employee benefits staff are required.

A. employees have fewer interactions with HR staff.

All of the following factors are reasons for the growth of benefits except: A. foreign competition. B. unions. C. cost effectiveness of benefits. D. government impetus.

A. foreign competition.

Employers prefer contributory benefits financing for all except which of the following? A. more favorable tax treatment B. A "free good," is less valuable to an employee. C. Employees have little personal interest in controlling the costs of a free good. D. It helps control benefit costs.

A. more favorable tax treatment

A recent survey shows that the majority of employers are responding to increased benefit costs by______ A. requiring employees to pay higher deductibles and copays. B. raising premiums. C. dropping health care plans. D. relying on the Patient Protection and Affordable Care Act

A. requiring employees to pay higher deductibles and copays.

The first issue in setting up a benefits package is: A. who should be protected or benefited. B. how much choice should employees have among benefits. C. how should benefits be financed. D. are benefits legally defensible.

A. who should be protected or benefited.

A recent survey shows employees ranking employee benefits __________ in explaining job satisfaction. A. first B. second C. third D. last

B. second

In the _____ benefit package, a package is designed with the average employee in mind. A. shared B. standard C. cafeteria-style D. federal

B. standard

A study of the factors affecting MBA students' job choice showed _____ was ranked as least important. A. geographic location B. promotion opportunities C. employee benefits D. opportunity for advancement

C. employee benefits

Advantages of employer sponsored life and health insurance include all of the following except: A. favorable tax treatment. B. lower rates. C. employees can choose coverage levels. D. easy qualifying standards.

C. employees can choose coverage levels.

All of the following except _____ are factors affecting employer choices of components of a benefits package. A. relationship to total compensation costs B. legal requirements C. equity D. competitor offerings

C. equity

A type of benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan. A. a select choice B. a no-deductible C. flexible benefit D. flat dollar benefit

C. flexible benefit

A _____ is an employer-provided subsidized basic medical plan with buy-up options. A. full-defined contribution B. menu-driven health-care plan C. managed competition D. health savings account

C. managed competition

Which of the following would an employer be least likely to use if they sought to reduce benefit costs? A. Dual coverage B. Benefit ceiling C. Coinsurance D. Defined benefit plans

D. Defined benefit plans

Which of the following is not a major benefits planning and design issue? A. Benefit adequacy B. Competitiveness of benefits C. Cost effectiveness D. Diversity compliance

D. Diversity compliance

Which of the following benefits has been found to increase productivity in organizations? A. Child care B. Employee stock options C. Health care D. No benefit has been found to increase productivity.

D. No benefit has been found to increase productivity.

All of the following are advantages of flexible benefits except: A. costs of benefits are contained. B. employee understanding of benefits increases. C. introduction of new benefits is less costly. D. administrative expenses increase.

D. administrative expenses increase.

The best way for companies to decide whether or not the company can afford a benefit is on a _____ basis. A. package B. first dollar deductible C. discounted cost D. cost-centered

D. cost-centered

Tiered networks, managed competition and health savings accounts are all examples of choices for _____________ A. menu-driven health care. B. flexible benefits. C. cafeteria plans. D. customer-driven health care.

D. customer-driven health care.

A customer-driven health care plan that offers employees a choice of medical plans that include systems of varying cost is the: A. full-defined contribution. B. health savings account. C. managed competition. D. tiered networks.

D. tiered networks.