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.