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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following best describes a factor that has influenced the growth and change in benefits?

A) Employees have longer career expectations.
B) Employees are expressing a greater desire for choice in their benefits.
C) There is a decreasing number of females in the workforce.
D) Decreasing costs are causing growth in the numbers of benefits employers offer.

2. Employer-sponsored death benefits are most commonly based on which of the following?

A) The employee's annual salary
B) The employee's premium contributions
C) The size of the employee's family
D) The employee's health history

3. What best describes the primary purpose of budgeting?

A) Making choices about spending based on expectations of performance
B) Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
C) Increasing profitability of the business annually to maximize shareholder/owner value
D) Limiting spending to a fixed percentage of organizational revenue

4. Which of the following is the best example of applying business acumen to data analysis?

A) Reviewing historical trends to complete annual budgets
B) Compiling data needed to calculate salary budgets and merit increases
C) Identifying trends and key messages emerging over time
D) Providing quarterly incentive estimates for accruals

5. What is a primary objective of profit-sharing and performance-sharing variable pay plans?

A) To defer compensation expenses to future reporting periods
B) To increase employee identification with the organization's success
C) To achieve organizational cost savings through base pay reductions
D) To reward individual employees for some significant contribution

Solutions: