Question 1

Because benefits packages are more complex than pay structures,they are harder for employees to understand and appreciate.

Accepted Answer

A) True 
 B)False

Question 2

All U.S.employees,including federal,state,and local government employees,are covered under the Old Age,Survivors,Disability,and Health Insurance program.

Accepted Answer

A) True 
 B)False

Question 3

Ravi is the CEO of a magazine publishing company.He wants to provide benefits for his employees,but would still like to control his company's costs.Jess,the head of the HR department,suggests implementing a cafeteria-style plan.What would be the most likely benefit of Ravi doing so?

Accepted Answer

A)   He will save time by using software packages to offer benefits packages.
B)   He will avoid the cost of providing employees with benefits they don't value.
C)   Having a non-standardized plan will make Ravi's company seem cutting-edge.
D)   Employees of the company,including Ravi,will be given more vacation days.
E)   Costs will be easy to estimate since all benefits options will be taken into consideration.

Question 4

Cafeteria-style plans increase benefits costs for employers.

Accepted Answer

A) True 
 B)False

Question 5

How are cash balance plans different from defined-benefit and defined-contribution plans?

Accepted Answer

A defined-benefit plan guarantees a spec...

Question 6

Tax laws generally make benefits unfavorable to employees.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an advantage of providing benefits instead of cash compensation?

Accepted Answer

A)   It is simpler to pay compensation in benefits than in cash.
B)   Benefits give greater control to employees over cash compensation.
C)   All companies that provide benefits become eligible for tax breaks by state and federal agencies.
D)   Younger employees place more importance on benefits than cash compensation.
E)   Employers can assemble creative benefits packages that give them a competitive advantage.

Question 8

As Ray Inc. ,a shoe manufacturer,grows more profitable,it wants to become more competitive as an employer in the labor market.Tanya,the human resource manager,urges the company to develop a more attractive package of benefits,rather than simply raising salaries.Which of the following statements best supports Tanya's argument?

Accepted Answer

A)   Employees do not pay income taxes on most benefits they receive.
B)   Benefits are harder for employees to understand than pay structures.
C)   Employees could get a better deal if they bought their own insurance policies.
D)   Higher cash compensation gives employees more purchasing power.
E)   Different employees look for different types of benefits.

Question 9

Under the Older Workers Benefit Protection Act of 1990,which of the following guidelines must employers follow when asking employees to sign early-retirement waivers?

Accepted Answer

A)   Inform employees that they may consult with a lawyer before signing.
B)   Allow employees no more than 48 hours before signing the retirement agreement.
C)   Make Age Discrimination in Employment Act (ADE
A)  waivers compulsory.
D)   Provide lesser benefits than would otherwise be available upon retirement.
E)   Provide employees with an annual bonus and health insurance after the retirement.

Question 10

Which of the following must be true for a pension plan to be deemed as a qualified plan?

Accepted Answer

A)   It must not discriminate in favor of an organization's highly compensated employees.
B)   It must not be a cafeteria-style plan.
C)   It should include elder care and child care.
D)   It has to be a defined-contribution plan.
E)   It has to be a defined-benefit plan that requires most of the funding to come from the employer.

Question 11

Steve,the vice president of Ocher Inc. ,plans to introduce a retirement plan for all employees.George,the operations director,disagrees because the proposed plan would increase the company's costs.Which of the following,if true,strengthens Steve's argument?

Accepted Answer

A)   Some benefits have become so common that today's employees expect them.
B)   Benefit packages are more complex than pay structures.
C)   The employees at Ocher are young adults who prefer cash compensation to benefits.
D)   Benefit packages do not affect the competitive nature of the labor market.
E)   The federal government does not have mandatory requirements for specific retirement plans.

Question 12

Which of the following is true about disability insurance?

Accepted Answer

A)   It benefits the disabled employee only for the first year of disability.
B)   Payments under short-term plans are less than that of long-term plans.
C)   It pays about 50% to 70% of the employee's salary in case of disability.
D)   Most employers offer long-term disability plans.
E)   It offers coverage when the employee's dependent is disabled.

Question 13

In the United States,what is the legal requirement for giving employees paid vacation?

Accepted Answer

A)   Paid vacation in the United States must take place on specified days in addition to holidays.
B)   In the United States,employers must give the amount of paid vacation that makes economic sense.
C)   In the United States,employers must give employees 10 paid vacation days each year.
D)   U.S.law requires that new employees receive 25 or 30 days off.
E)   U.S.law lets employers decide on paid time off;there is no minimum.

Question 14

Sick leave programs

Accepted Answer

A)   must be provided by all employers according to the law.
B)   are based solely on the age of employees.
C)   pay employees for days not worked due to illness.
D)   are mandatory forms of unpaid leave.
E)   are forms of floating holidays.

Question 15

During a meeting to discuss ways to cut costs on benefit packages,the vice president of the company,Harold,suggests getting long-term disability insurance for all employees.Alexis,HR manager,disagrees with him stating that short-term disability coverage is more advantageous for the company.Which of the following supports Alexis' statement?

Accepted Answer

A)   Short-term disability coverage is offered by few employers,which leads to a competitive advantage.
B)   Long-term disability coverage does not have any limits on the amount to be paid each month to employees.
C)   Short-term disability plans limit maximum coverage in a month,which makes them more affordable for the company.
D)   The nature of work is such that the level of risk involved is high and injuries could be permanent.
E)   The majority of the workforce is middle-aged and prefers long-term coverage.

Question 16

Nick,the HR manager at a start-up company,helped the founder plan a benefits package that includes paid vacations,holidays,and sick leave.Now an employee approaches Nick to say she has been called up for jury duty and needs to be away next week.What should Nick do?

Accepted Answer

A)   He should direct the employee to use the Family and Medical Leave Act.
B)   He should forbid the employee from taking time off for jury duty.
C)   He should ask the employee to use her sick leave for jury duty.
D)   He should ask the employee to use her vacation time for jury duty.
E)   He should establish,and then apply,policies for other situations requiring time off.

Question 17

Kelly,a new employee,learns her company provides a group insurance plan that she can enroll in.Her friend,Michael,suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan.Which of the following weakens Michael's argument?

Accepted Answer

A)   Individual plans are typically offered only to senior executives.
B)   Rates for group insurance are typically lower than those of individual policies.
C)   Kelly will not be eligible for other benefits if she does not enroll in a group insurance plan.
D)   Employees get more for their money when they receive insurance as a group benefit.
E)   Kelly will get more take-home pay if she opts for a group insurance plan.

Question 18

Ron,the manager of a shipping company,introduces a set of communications,activities,and facilities designed to change health-related behaviors in ways that reduce health risks and subsequent medical costs.The program aims at specific health risks,such as high blood pressure,high cholesterol levels,smoking,and obesity.Based on these offerings,Ron has introduced a(n) _____.

Accepted Answer

A)   employee wellness program
B)   health maintenance organization plan
C)   preferred provider program
D)   managed care program
E)   consumer-driven health program

Question 19

Which of the following benefits provided by employer is required by law in the United States?

Accepted Answer

A)   paid vacation
B)   personal leave
C)   flextime
D)   Social Security contributions
E)   retirement savings plan

Question 20

For an average employee,the most common type of insurance offered as benefits is the pension program.

Accepted Answer

A) True 
 B)False

Exam 14: Providing Employee Benefits

Which of the following must be true for a pension plan to be deemed as a qualified plan?

Correct Answer
verified

Sick leave programs

Correct Answer
verified

Steve,the vice president of Ocher Inc. ,plans to introduce a retirement plan for all employees.George,the operations director,disagrees because the proposed plan would increase the company's costs.Which of the following,if true,strengthens Steve's argument?

Correct Answer
verified

Correct Answer
verified

Ravi is the CEO of a magazine publishing company.He wants to provide benefits for his employees,but would still like to control his company's costs.Jess,the head of the HR department,suggests implementing a cafeteria-style plan.What would be the most likely benefit of Ravi doing so?

Correct Answer
verified

All U.S.employees,including federal,state,and local government employees,are covered under the Old Age,Survivors,Disability,and Health Insurance program.

Correct Answer
verified

Nick,the HR manager at a start-up company,helped the founder plan a benefits package that includes paid vacations,holidays,and sick leave.Now an employee approaches Nick to say she has been called up for jury duty and needs to be away next week.What should Nick do?

Correct Answer
verified

Which of the following is true about disability insurance?

Correct Answer
verified

How are cash balance plans different from defined-benefit and defined-contribution plans?

Correct Answer
verified
A defined-benefit plan guarantees a spec...
View Answer

Correct Answer
verified

Tax laws generally make benefits unfavorable to employees.

Correct Answer
verified

Which of the following is an advantage of providing benefits instead of cash compensation?

Correct Answer
verified

Correct Answer
verified

Cafeteria-style plans increase benefits costs for employers.

Correct Answer
verified

Which of the following benefits provided by employer is required by law in the United States?

Correct Answer
verified

For an average employee,the most common type of insurance offered as benefits is the pension program.

Correct Answer
verified

Correct Answer
verified

In the United States,what is the legal requirement for giving employees paid vacation?

Correct Answer
verified

Because benefits packages are more complex than pay structures,they are harder for employees to understand and appreciate.

Correct Answer
verified

Under the Older Workers Benefit Protection Act of 1990,which of the following guidelines must employers follow when asking employees to sign early-retirement waivers?

Correct Answer
verified

Exam 14: Providing Employee Benefits

Which of the following must be true for a pension plan to be deemed as a qualified plan?

Correct AnswerverifiedShow Answer

Sick leave programs

Correct AnswerverifiedShow Answer

Steve,the vice president of Ocher Inc. ,plans to introduce a retirement plan for all employees.George,the operations director,disagrees because the proposed plan would increase the company's costs.Which of the following,if true,strengthens Steve's argument?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Ravi is the CEO of a magazine publishing company.He wants to provide benefits for his employees,but would still like to control his company's costs.Jess,the head of the HR department,suggests implementing a cafeteria-style plan.What would be the most likely benefit of Ravi doing so?

Correct AnswerverifiedShow Answer

All U.S.employees,including federal,state,and local government employees,are covered under the Old Age,Survivors,Disability,and Health Insurance program.

Correct AnswerverifiedShow Answer

Nick,the HR manager at a start-up company,helped the founder plan a benefits package that includes paid vacations,holidays,and sick leave.Now an employee approaches Nick to say she has been called up for jury duty and needs to be away next week.What should Nick do?

Correct AnswerverifiedShow Answer

Which of the following is true about disability insurance?

Correct AnswerverifiedShow Answer

How are cash balance plans different from defined-benefit and defined-contribution plans?

Correct AnswerverifiedA defined-benefit plan guarantees a spec...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Tax laws generally make benefits unfavorable to employees.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of providing benefits instead of cash compensation?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Cafeteria-style plans increase benefits costs for employers.

Correct AnswerverifiedShow Answer

Which of the following benefits provided by employer is required by law in the United States?

Correct AnswerverifiedShow Answer

For an average employee,the most common type of insurance offered as benefits is the pension program.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the United States,what is the legal requirement for giving employees paid vacation?

Correct AnswerverifiedShow Answer

Because benefits packages are more complex than pay structures,they are harder for employees to understand and appreciate.

Correct AnswerverifiedShow Answer

Under the Older Workers Benefit Protection Act of 1990,which of the following guidelines must employers follow when asking employees to sign early-retirement waivers?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A defined-benefit plan guarantees a spec...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified