Mgmt 494

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 ?

keeping current distribution channels

All of the following are effective goals and objectives for sales professionals EXCEPT

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 :

60

An employer - sponsored retirement plan is considered top - heavy when the accrued benefits of key employees exceed percent of the accrued benefits

CEO

Based on the criteria for key employees , which of the following positions would be considered a key employee ?

allow employees to continue with their medical coverage through their employer temporarily

COBRA was designed to

Common review date

Carissa and her colleagues have received an annual merit pay increase on June 15 for the last two years . What is the term used to define the date when Carissa and her colleagues receive the annual merit increase ?

the percentage of the covered expense that the insured person will pay

Coinsurance refers to

The public image of the consulting firm

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 ?

handle personal problems that affect job performance

Employee assistance programs ( EAPS ) are established by companies to help employees

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

modify their work schedules within the limits set by the employer

Flextime schedules allow workers to

Ability to participate in an employee retirement program

For employees who participate in job sharing , which of the following is a likely

based on the needs of a homogenous workforce consisting mostly of males

For many decades , discretionary benefits were

paid time - off benefits

For the employee , flexible workweek schedules have the greatest impact on

reducing employee training costs

From an employer's perspective , job sharing is likely to result in

more emphasis on incentive pay in the compensation mix

Generally , the greater the influence of the salesperson on the buying decision , the

They both have out - of - pocket maximum limits .

How are HMOs and fee - for - service plans the same ?

Lawful procedures or social efforts designed to stimulate the basic physical and material well - being of people in need

How are welfare practices defined ?

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

By giving employers a tax break on the amount paid out as employees ' retirement payments

How has the government encouraged employers to provide retirement benefits to employees since as early as the 1900s ?

age 21 ; 1 year

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 .

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 ?

multiple - tiered commission plan

In a employees earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level .

weekly

Individuals who meet the eligibility criteria for unemployment benefits receive benefits .

35

Involuntary part - time employees work fewer than hours per week .

Food

Leasing employees to a client company is common in which type industry ?

performance appraisals

Merit pay systems use to determine employees ' performance .

60-70 percent of employees ' pretax salary on a monthly or weekly basis

Most short - term disability plans pay employees

encourage certain worker behaviors that have strategic value to the firm

One of the ways companies can use discretionary benefits is to

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

competitive pay rates based on relevant labor market

Pay rates that fall along the market pay line represent

Compressed workweek schedule

Sonia works 40 hours each week at a publishing company . She works Monday through Thursday from 8:00 am until 6:00 pm . Which term best describes Sonia's work arrangement

legally accountable to the temporary employment agency that hired them

Technically , when contingent workers are placed in an organization , they are

insure retirement income for workers covered under a private - sector defined benefit plan

The Pension Benefit Guaranty Corporation ( PBGC ) was created 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

keep align the executive's and shareholders ' interests in the long term

The idea behind deferred compensation for an executive is to

protection programs , paid time off , and services

The three broad areas in which employers provide discretionary benefits are

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 ?

Injuries that are self - inflicted

Under exclusion provisions for short - term disability plans , what kind of disability is almost always excluded ?

a firm assumes total costs for each discretionary benefit

Under noncontributory financing for benefits programs ,

provide subsistence income to all beneficiaries regardless of job performance

Under the principle of social adequacy , benefits are designed to

are acceptable , because they strengthen union bargaining power

Unions in the public sector feel that flex schedules

Internal Revenue Code , ERISA , and Pension Protection Act of 2006

What are the three key laws that have influenced discretionary benefits practices ?

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

State and local governments and not - for - profit companies

What entities are typically exempt from FUTA ?

Money to cover basic living expenses

What is a draw ?

For injuries and accidents that occur on the job , employers must assume the costs .

What is a key principle of workers ' compensation ?

An employee must use the accumulated money in the account by a specific time or it will be lost .

What is a notable drawback to flexible spending accounts ( FSAs ) ?

An employee must use the accumulated money in the account by specific time or it will be lost .

What is a notable drawback to flexible spending accounts ( FSAs ) ?

Because of the favorable tax treatment of the plans and government - imposed wage increase controls

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 do so ?

It requires private contractors to provide wages that are equal to or above the prevailing wage rates in area where work is being performed .

What is one of the requirements of the Davis - Bacon Act ?

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

It limits the company's ability to recruit and retain qualified workers .

What is the primary limitation of a two - tier pay structure ?

Industrial accidents and occupational illnesses among workers

What was a common occurrence during the early twentieth century that led to workers ' compensation insurance

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 ?

Preventing families from becoming financially overwhelmed once unemployed happen on the job

What was the motivation behind the Social Security Act ?

cost - of - living adjustment for a certain area

When determining pay structure based on geographical consideration , many employers consider the

6 months

When determining who receives coverage , companies usually withhold discretionary benefits to probationary employees which are typically employees working at a company for a period no longer than

Executives receive pay for nonperformance and are given generous amounts to leave the company .

When referring to executive compensation , what is meant by the term pay - for - failure ?

The Employee Retirement Income Security Act of 1974

Which act was established to regulate the implementation of employee benefits programs , thereby protecting employee benefits rights ?

The FLSA's minimum wage and overtime provisions do not apply to some seasonal workers

Which is TRUE of seasonal workers ?

Research shows that boosting merit pay will not necessarily increase productivity .

Which is true of merit pay increases ?

Pay mix is substantially different among CEOs in various countries .

Which is true when comparing non U.S . CEOs with U.S. CEOS ?

An employee who holds a positon of substantial responsibility

Which of the following best describes the role of a key employee in an organization ?

The retention of valued employees

Which of the following best describes what a well - designed pay structure promotes ?

Certification

Which of the following ensures that employees possess at least a minimally acceptable level of skill proficiency upon completion of a training unit ?

Contingent employees are paid less and have fewer benefits

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 ?

Two - tier pay structures

Which of the following rewards newly hired employees less than established or tenured employees ?

one 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 ?

Flexible work schedules can reduce productivity both core and

Which of the following statements is FALSE regarding flexible work schedules ?

They extend a preestablished set of benefits , such as medical insurance , as a program core .

Which of the following statements is TRUE of core plus option plans ?

Definitive Proxy Statement

Which of the following would contain detailed information the compensation of a firm's CEO and Named Executive Officers ?

The intrinsic motivation of some sales professionals is undermined by commission - only plans .

Which statement about commissions is TRUE ?

Companies and union representatives , when appropriate , should determine which benefits are most important for employees

Which statement about designing and planning benefits programs is TRUE ?

FSAS allow certain benefits ( like child care ) to be paid with pretax dollars .

Which statement about flexible spending accounts ( FSAs ) is TRUE ?

Temporary agency fees are based on a percentage of a placement's pay rate .

Which statement about temporary employment agencies is TRUE

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 ?

Academic research is not decisive regarding connection between executive compensation and company performance

Which statement regarding executive compensation is TRUE ?

Salary - plus - bonus plan

Which term refers to a salesperson receiving a set salary plus a single payment for the achievement of specific , exceptional goals ?

Companies with fewer than 20 employees , church plans , and plans maintained by the U.S. governmen

Who is exempt from COBRA ?

Companies using commission - only plans have compensation expenditures that vary with sales revenue

Why are commission only sales plans best suited for companies that are pursuing lowest - cost strategies ?

Escalating cost increases in workers ' compensation

Why are several state legislatures considering integrating employer - sponsored medical insurance and workers ' compensation programs ?

To reduce the number of unscheduled employee absences

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 promote a positive image of the company

Why would a company provide outplacement assistance to an employee ?

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 .

workweek schedule 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 ?

financial condition of the company

and external factors of an organization . The most important internal Compensation consultants determine executive pay based on a strategic analysis of internal factor in determining executive compensation is the

When groups share the same mind - set regarding issues

of the advantages of hiring contingent workers is that it prevents groupthink from occurring in the workplace . Which of the following best describes groupthink ?

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 .

ow do executives receive an income tax benefit by participating in incentive stock option plans ?

A. Pharmaceutical sales

which type of selling situation will salary represent a significant pay component ?