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

2. Which of the following is appropriate when an employee is required by the employer to attend training as a condition of employment?

A) Only educational programs focused on remedial education (up to eighth grade) can be excluded from the 40-hr criteria for time and a half.
B) Appropriate study time does not count as hours worked regardless of the educational level of the training program.
C) No training time is considered hours worked even if it is a condition of employment, since the employee is free to leave the company.
D) Even when the training is required, as long as the classes are outside working time and not on company property, they are not hours worked.

3. Which of the following is the earnings available to equity owners after paying debt and taxes?

A) Net income
B) EPS
C) EBIT
D) Operating profit

4. What type of equity incentive gives employees the right to purchase company shares at a specified price?

A) Stock/share options
B) Stock/share grants
C) Performance units
D) Restricted stock/shares

5. Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?

A) In the overall program objectives
B) In the differences in pay levels for the different levels of the organization
C) In the methods and processes used to make pay decisions
D) In the details of their individual compensation packages

Solutions: