Question 1

Which of the following is an example of a defined-contribution pension plan?

Accepted Answer

A)   consumer-driven pension plan
B)   money purchase plan
C)   cost-sharing plan
D)   flexible spending account plan
E)   unfunded PBGC plan

Question 2

Helen is a marketing manager at a local equipment manufacturer.She and her husband know that saving for college for their 4-year-old twin boys is a challenge.Her employer recently implemented a college tuition plan that lets parents and other family members defer taxes on their contributions to the plan.What is the type of plan recently implemented?

Accepted Answer

A)   529 savings plan
B)   401k savings plan
C)   207 college tuition plan
D)   U.S.saving bonds plan
E)   TD Ameritrade college tuition plan

Question 3

Isaiah,an HR manager,conducted a survey to learn which benefits employees value the most.He discovers that the survey results will be difficult to apply.What is the most likely reason?

Accepted Answer

A)   Employees expect to receive benefits that are legally required and widely available.
B)   Software is the only method employees will accept to help them choose their benefits.
C)   The costs of turnover at Isaiah's company are high.
D)   The employees only value medical insurance.
E)   Employees have very different opinions about what they value.

Question 4

Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

Accepted Answer

A)   the Consolidated Omnibus Budget Reconciliation Act (COBR
A)  
B)   the Age Discrimination in Employment Act (ADE
A)  
C)   the American Disabilities Act (AD
A)  
D)   the Fair Labor Standards Act (FLS
A)  
E)   the Employee Retirement Income Security Act (ERIS
A)

Question 5

Jim is the CEO of a company that is expanding overseas.He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce.However,the HR team brings up the concern of higher expenses involved in this type of benefits.Which of the following is Jim likely to do to lower costs at the initial stage?

Accepted Answer

A)   opt for communication methods that do not stress the value of each benefit
B)   avoid standardized plans available for employers opting for cafeteria-style benefits
C)   use software packages to design the plan
D)   discourage employees from choosing lower-cost options
E)   encourage employees to choose benefits they need the most

Question 6

Steve is a human resource manager at an advertising firm.Steve proposes that the company adopt defined-benefit plans to attract and retain its employees.In which situation will this benefit be most valuable to the firm's employees?

Accepted Answer

A)   all the employees are under the age of 30
B)   the nature of work demands college graduates
C)   the firm employs experienced,older people
D)   the firm employs young and creative minds
E)   the firm mainly employs freelancers

Question 7

In which of the following situations will workers become eligible for unemployment benefits?

Accepted Answer

A)   when they have worked only for a few days
B)   when they are out of work because they are sick
C)   when they are discharged because of willful misconduct
D)   when they are actively seeking work
E)   when they are out of work because of a labor dispute

Question 8

What are family-friendly benefits? Explain the common types of family-friendly benefits.

Accepted Answer

As employers have recognized the signifi...

Question 9

According to your text,a logical place to begin selecting employee benefits is to establish _____ for the benefits package.

Accepted Answer

A)   a basic hierarchy
B)   limits
C)   costs
D)   goals
E)   objectives

Question 10

According to the Americans with Disabilities Act (ADA),employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits.

Accepted Answer

A) True 
 B)False

Question 11

Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

Accepted Answer

A)   tuition reimbursement programs
B)   paid vacations
C)   pension plans
D)   quarterly promotions
E)   medical insurance plans

Question 12

Which of the following is a true of unemployment insurance?

Accepted Answer

A)   It provides payments to offset lost income during voluntary unemployment.
B)   Most funding for unemployment insurance is provided by employees.
C)   Unfavorable experience ratings of employers lead to higher premiums.
D)   Costs for unemployment insurance are standard across the country.
E)   It is a voluntary program based on number of employers in a specific state.

Question 13

On average,out of every dollar spent by a company on employee compensation,more than _____ cents goes to employee benefits.

Accepted Answer

A)   75
B)   30
C)   50
D)   15
E)   20

Question 14

Which of the following is true of short-term disability insurance?

Accepted Answer

A)   It pays the full amount of a disabled employee's salary for a minimum period of one year.
B)   It pays the double the full salary of a disabled employee for a period of two months.
C)   Only employees who have been with an organization for less than two years are eligible for short-term disability insurance.
D)   It pays a portion of a disabled employee's salary as benefits for up to six months.
E)   It is only provided to those individuals who work part time.

Question 15

In a meeting to discuss pension plans,management decides to offer retirement plans exclusively to the organization's owners and top managers.Steven,one of the top managers,disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees.Which of the following strengthens Steven's belief?

Accepted Answer

A)   Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees.
B)   The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees.
C)   A top-heavy plan requires faster vesting for non-key employees.
D)   Extending pension plans to employees at all levels will triple the costs.
E)   Pension plans are determined exclusively by state and federal laws.

Question 16

Old Thyme Manufacturing offered employees a defined-benefit retirement plan,in which retirees received benefits calculated on the basis of their age,earnings,and years of service.But the company didn't keep up with technology,and its earnings fell.When the stock market dipped,the company found that it couldn't afford to keep up with paying for its retirement benefits.What protection will the retirees have in this situation?

Accepted Answer

A)   Old Thyme must give the employees the option to sell their stock in the company.
B)   The employees will receive payouts from their 401(k) plans.
C)   The employees will receive a share of profits as part of the company's ESOP.
D)   Because the plan was underfunded,the retirees will no longer receive benefits.
E)   The Pension Benefit Guarantee Corporation will provide them with a basic benefit.

Question 17

Which of the following is an advantage of cafeteria-style plans?

Accepted Answer

A)   Employees do not have to select their individual plans.
B)   Employees can get a better understanding of the value of benefits provided.
C)   These types of plans have lower administrative costs.
D)   Since employees will select the benefits that they need the most,it reduces the overall costs.
E)   When companies provide cafeteria-style plans,they do not have to pay unemployment insurance tax.

Question 18

Bilge Makers Unlimited has a goal to lower the cost of employee benefits.Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics,the U.S.Chamber of Commerce,and other sources.The investigation shows that its cost for workers' compensation insurance is high relative to other companies.Which of the following actions could best help Bilge Makers accomplish its goal?

Accepted Answer

A)   accept the high cost and look for other areas in which to reduce spending
B)   replace the workers' compensation insurance with disability insurance
C)   shop for a better deal on workers' compensation insurance
D)   cancel the workers' compensation insurance
E)   improve safety to lower the company's experience rating

Question 19

Benefits provided to domestic partners of employees have the same tax advantages as benefits provided to their spouses.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a requirement set for employers under the Financial Accounting Standards Board standards?

Accepted Answer

A)   Employers must fund benefits on a pay-as-you-go basis.
B)   Benefits must not appear as future cost obligations.
C)   Employers should encourage employees to participate in management functions.
D)   Financial statements should be made in such a way that outsiders cannot understand them.
E)   Employers must set aside the funds they expect to need for benefits to be paid after retirement.

Exam 14: Providing Employee Benefits

Correct Answer
verified

Which of the following is a requirement set for employers under the Financial Accounting Standards Board standards?

Correct Answer
verified

According to your text,a logical place to begin selecting employee benefits is to establish _____ for the benefits package.

Correct Answer
verified

Which of the following is true of short-term disability insurance?

Correct Answer
verified

What are family-friendly benefits? Explain the common types of family-friendly benefits.

Correct Answer
verified
As employers have recognized the signifi...
View Answer

Steve is a human resource manager at an advertising firm.Steve proposes that the company adopt defined-benefit plans to attract and retain its employees.In which situation will this benefit be most valuable to the firm's employees?

Correct Answer
verified

Which of the following is a true of unemployment insurance?

Correct Answer
verified

Benefits provided to domestic partners of employees have the same tax advantages as benefits provided to their spouses.

Correct Answer
verified

Which of the following is an example of a defined-contribution pension plan?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

According to the Americans with Disabilities Act (ADA),employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits.

Correct Answer
verified

Correct Answer
verified

Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

Correct Answer
verified

On average,out of every dollar spent by a company on employee compensation,more than _____ cents goes to employee benefits.

Correct Answer
verified

Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

Correct Answer
verified

Isaiah,an HR manager,conducted a survey to learn which benefits employees value the most.He discovers that the survey results will be difficult to apply.What is the most likely reason?

Correct Answer
verified

Correct Answer
verified

Which of the following is an advantage of cafeteria-style plans?

Correct Answer
verified

In which of the following situations will workers become eligible for unemployment benefits?

Correct Answer
verified

Exam 14: Providing Employee Benefits

Correct AnswerverifiedShow Answer

Which of the following is a requirement set for employers under the Financial Accounting Standards Board standards?

Correct AnswerverifiedShow Answer

According to your text,a logical place to begin selecting employee benefits is to establish _____ for the benefits package.

Correct AnswerverifiedShow Answer

Which of the following is true of short-term disability insurance?

Correct AnswerverifiedShow Answer

What are family-friendly benefits? Explain the common types of family-friendly benefits.

Correct AnswerverifiedAs employers have recognized the signifi...View AnswerShow Answer

Steve is a human resource manager at an advertising firm.Steve proposes that the company adopt defined-benefit plans to attract and retain its employees.In which situation will this benefit be most valuable to the firm's employees?

Correct AnswerverifiedShow Answer

Which of the following is a true of unemployment insurance?

Correct AnswerverifiedShow Answer

Benefits provided to domestic partners of employees have the same tax advantages as benefits provided to their spouses.

Correct AnswerverifiedShow Answer

Which of the following is an example of a defined-contribution pension plan?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the Americans with Disabilities Act (ADA),employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

Correct AnswerverifiedShow Answer

On average,out of every dollar spent by a company on employee compensation,more than _____ cents goes to employee benefits.

Correct AnswerverifiedShow Answer

Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

Correct AnswerverifiedShow Answer

Isaiah,an HR manager,conducted a survey to learn which benefits employees value the most.He discovers that the survey results will be difficult to apply.What is the most likely reason?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is an advantage of cafeteria-style plans?

Correct AnswerverifiedShow Answer

In which of the following situations will workers become eligible for unemployment benefits?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
As employers have recognized the signifi...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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