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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) They are often integrated with government-sponsored programs.
C) There is no promise of a specific benefit at retirement.
D) Individual accounts must be maintained for each participant.

2. What is the minimum age for an individual to qualify for protection under the Age Discrimination in Employment Act?

A) 45
B) 55
C) 40
D) 50

3. How are the compensation communication needs of managers different from those of individual employees?

A) They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
B) They aren't. Managers are concerned about their compensation also.
C) They are also responsible for merit increases, incentives and hiring so they have greater information needs.
D) They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.

4. What do profits, equity and debt all have in common?

A) They are all sources of capital.
B) They all incur the same costs to the business.
C) They are all reported on the balance sheet.
D) Nothing. Each of these is a different financial metric.

5. As a general rule, what are individual contributors most likely to ask about their compensation?

A) How their pay compares to co-workers
B) How the company makes pay decisions that affect them
C) How the company sets compensation budgets
D) What the take-home pay will be

Solutions: