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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:
1. Which of the following statements best describes defined benefit (DB) plans?
A) Employees are at risk for financial resources.
B) Individual accounts must be maintained for each participant.
C) There is no promise of a specific benefit at retirement.
D) They are often integrated with government-sponsored programs.
2. Who are you most likely to hear from if there are questions about an employee's compensation?
A) The employee's manager
B) A concerned co-worker
C) The employee's department head
D) The employee
3. How does the Fair Labor Standards Act require employers to pay their nonexempt employees?
A) Double time for time worked on Sunday
B) Time and a half for all hours worked over 40 in the workweek
C) Time and a half for all hours worked over 8 in the workday
D) Double time for work on Saturday
4. Internal process metrics are most useful in which of the following situations?
A) Assessing how well the business is running
B) Determining employee satisfaction levels
C) Evaluating customer perceptions of products or services
D) Measuring the financial success of the business
5. Regarding fixed and variable costs, what are Finance's primary concerns?
A) Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.
B) Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.
C) Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.
D) Fixed costs and variable costs are equally important and both should be kept to a minimum.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: B |


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