MGT 308 Quiz #12

The typical employee can recall _____ percent of the benefits he or she receives. a. almost 50 b. less than 15 c. over 30 d. 40

b. less than 15

A 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. a flexible benefit d. a flat dollar benefit

c. a flexible benefit

The _____ 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. Consolidated Omnibus Budget Reconciliation Act

a. Patient Protection and Affordable Care Act

Trumbrella Corp. is a pharmaceuticals company. One of its employees reports that he had an on-the-job injury caused by slippery factory floor that broke his back. When Trumbrella initiates its claims processing, it should first: a. determine whether the accident happened. b. determine if the employee is eligible for any benefit. c. calculate the payment required to be paid to the employee. d. contact the insurance companies to enquire about the possibility of a joint payment.

a. determine whether the accident happened.

As part of the efforts to bring down the employee benefits cost to the company, GrindStop Corp. restricts the number of visits to the dentists covered in the dental plan to two per year. Which of the following cost-containment strategies is used by GrindStop? a. Copay b. Benefit limitation c. Administrative cost containment d. Wellness program

b. Benefit limitation

Which of the following statements is true of employee benefits? a. Employers can substitute insurance benefits for job security. b. Group insurance benefits has relatively easy qualification standards. c. Most employee benefits are taxable. d. Many group-based benefits are obtained at a higher rate than could be obtained by employees acting on their own.

b. Group insurance benefits has relatively easy qualification standards.

_____ are NOT used for determining employee benefit preferences. a. Demographic data b. Product market share data c. Employee surveys d. Cafeteria-style plans

b. Product market share data

Which of the following benefits is NOT mandated by state or federal legislation? a. Workers' compensation b. Work/life balance c. Social security d. Unemployment insurance

b. Work/life balance

By limiting liability for an employee's hospital stay costs to $200,000, an employer is using a cost-containment measure known as: a. dual coverage. b. benefit ceiling. c. coinsurance. d. deductible.

b. benefit ceiling.

All of the following are cost-containment practices designed to reduce benefit costs EXCEPT: a. probationary periods. b. provision of skills development training. c. copay. d. seeking competitive bids for benefit delivery.

b. provision of skills development training.

_____ is the most frequently used medium for communicating employee benefits. a. A notice board b. A seminar c. An employee benefit handbook d. A meeting with the chief executive officer

c. An employee benefit handbook

The biggest cost-containment strategy in recent years is the movement to: a. benefit limitations. b. HMOs. c. outsourcing. d. higher deductibles.

c. outsourcing.

The first issue in setting up a benefits package is: a. finding out who should be protected or benefited. b. figuring out how much choice should employees have among benefits. c. determining how benefits should be financed. d. choosing legally defensible benefits.

a. finding out who should be protected or benefited.

A survey shows that the majority of employers are responding to increased benefit costs by _____. a. requiring employees to pay higher deductibles and copays b. laying off employees c. dropping health care plans d. relying on the Patient Protection and Affordable Care Act

a. requiring employees to pay higher deductibles and copays

Which of the following companies uses probationary periods as a cost-containment measure? a. Alpha Corp. combines the benefits offered for couples who work within the organization b. DLG Corp. excludes its new recruits from benefit coverage until they complete a year c. Kimberly Corp. requires employees in the lowest salary quartile to pay for 20 percent of benefits d. Amethyst Corp. limits its employees to avail coverage for only two dentist visits every six months

b. DLG Corp. excludes its new recruits from benefit coverage until they complete a year

A recent survey shows employees ranking employee benefits _____ in explaining job satisfaction. a. first b. second c. third d. last

b. second

How many weeks of leave does Family Medical Leave Act (1993) mandate for all workers at companies that employ 50 or more people? a. 4 weeks b. 8 weeks c. 12 weeks d. 16 weeks

c. 12 weeks

In 1959, benefits were approximately _____ percent of payroll and in 2010 it was approximately _____ percent of payroll. a. 30; 50 b. 20; 38 c. 25; 30 d. 30; 60

c. 25; 30

DrenchFort Corp. is a small company that pays high wages. As its wages are high, it does not provide any benefits. Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees. Which of the following benefits is most likely to reduce turnover? a. Counseling service b. Early retirement plan c. Medical coverage d. Profit-sharing plan

c. Medical coverage

_____ allows employees who have resigned or have been laid off through no fault of their own to continue receiving health coverage under their employer's plan at a cost borne by the employee. a. Health Maintenance Act (1973) b. FLSA (1938) c. The tax reform of 1982 d. COBRA (1984)

d. COBRA (1984)

Which of the following is an advantage of flexible benefit plans? a. They require no expenditure from the employers. b. They decrease the administrative burdens for employers. c. They decrease the costs as employees pick only those benefits they will use resulting in the subsequent high benefit utilization. d. They increase the involvement of employees in choosing benefit plans.

d. They increase the involvement of employees in choosing benefit plans.

If a benefit forecast suggests future cost containment may be difficult, the benefit should: a. be completely paid for by employees. b. be used on a noncontributory basis. c. not be used. d. be offered to employees only on a cost-sharing basis.

d. be offered to employees only on a cost-sharing basis.

All of the following are advantages of flexible benefits EXCEPT: a. containment of costs of benefits. b. increased understanding of benefits by employees. c. reduced expense of introducing new benefits. d. decreased administrative expenses.

d. decreased administrative expenses.

Surveys show that the most highly valued benefit is: a. dental coverage. b. life insurance. 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