Question 1

Describe the two primary ways of distributing group/team incentives.

Accepted Answer

The two primary ways for distributing gr

Question 2

Which of the following statements is true of a discretionary system of determining bonuses?

Accepted Answer

A)  The federal and state governments decide the bonuses. 
B)  All the shareholders of the company decide the bonuses. 
C)  The labor unions and employees decide the bonuses. 
D)  The CEO and the board of directors decide the bonuses. 
A)  The federal and state governments decide the bonuses. 
B)  All the shareholders of the company decide the bonuses. 
C)  The labor unions and employees decide the bonuses. 
D)  The CEO and the board of directors decide the bonuses.

Question 3

A stock option plan gives employees the right to purchase an unlimited number of shares of company stock at a specified exercise price for a limited period of time.

Accepted Answer

A) True 
 B)False

Question 4

Describe the different types of sales compensation plans.

Accepted Answer

Salary Only: Some companies pay salespeo

Question 5

Which of the following is an allocation choice in profit-sharing plans?

Accepted Answer

A)  Fixed percentage of profits 
B)  Based on years of service 
C)  Sliding percentage based on sales 
D)  Unit profits 
A)  Fixed percentage of profits 
B)  Based on years of service 
C)  Sliding percentage based on sales 
D)  Unit profits

Question 6

In a stock option plan, if the market price of the stock exceeds the exercise price, _____.

Accepted Answer

A)  employees can then exercise the option and buy the stock 
B)  employees have to purchase the stock at the new price 
C)  employees have to forfeit their claims to the company shares 
D)  employees will make a loss through stock ownership 
A)  employees can then exercise the option and buy the stock 
B)  employees have to purchase the stock at the new price 
C)  employees have to forfeit their claims to the company shares 
D)  employees will make a loss through stock ownership

Question 7

The compensation committee usually is a subgroup of the board of directors that is composed of directors who are currently the officers of the firm.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true of group/team incentives?

Accepted Answer

A)  They ensure that members of a group are not put under social pressure. 
B)  They are always distributed equally among team members. 
C)  They can foster cohesiveness among team members. 
D)  They are in the form of cash bonuses and cannot be given in the form of nonmonetary incentives. 
A)  They ensure that members of a group are not put under social pressure. 
B)  They are always distributed equally among team members. 
C)  They can foster cohesiveness among team members. 
D)  They are in the form of cash bonuses and cannot be given in the form of nonmonetary incentives.

Question 9

Describe the elements of executive compensation.

Accepted Answer

Because many executives are in high tax

Question 10

The "clawbacks" provision in the _____ allows a company to recover any incentive-based pay that was paid out during the prior three years if it would not have been paid under restated financial statements.

Accepted Answer

A)  Sarbanes-Oxley Act 
B)  Dodds-Frank Act 
C)  Lilly Ledbetter Fair Pay Act 
D)  Walsh-Healy Public Contracts Act 
A)  Sarbanes-Oxley Act 
B)  Dodds-Frank Act 
C)  Lilly Ledbetter Fair Pay Act 
D)  Walsh-Healy Public Contracts Act

Question 11

Entitlement culture is the idea that _____.

Accepted Answer

A)  basic salaries are extra pay for sales performance rather than deferred bonuses 
B)  basic salaries are deferred bonuses rather than extra pay for extra sales performance 
C)  bonuses are extra pay for sales performance rather than deferred salary 
D)  bonuses are deferred salary rather than extra pay for extra sales performance 
A)  basic salaries are extra pay for sales performance rather than deferred bonuses 
B)  basic salaries are deferred bonuses rather than extra pay for extra sales performance 
C)  bonuses are extra pay for sales performance rather than deferred salary 
D)  bonuses are deferred salary rather than extra pay for extra sales performance

Question 12

Supplemental benefit plans are plans that are available to nonexecutive employees.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a metric of human resources in variable pay plans?

Accepted Answer

A)  Revenue growth 
B)  Employee satisfaction 
C)  Customer satisfaction 
D)  Return on investment 
A)  Revenue growth 
B)  Employee satisfaction 
C)  Customer satisfaction 
D)  Return on investment

Question 14

_____ refer to the compensation given to an executive if he or she is forced to leave an organization.

Accepted Answer

A)  Perquisites 
B)  Golden parachutes 
C)  Commissions 
D)  Short-term Incentives 
A)  Perquisites 
B)  Golden parachutes 
C)  Commissions 
D)  Short-term Incentives

Question 15

Which of the following is typically classified as a regular benefit?

Accepted Answer

A)  Health insurance 
B)  Corporate-owned employee life insurance 
C)  Company-paid financial planning for executives 
D)  Estate planning 
A)  Health insurance 
B)  Corporate-owned employee life insurance 
C)  Company-paid financial planning for executives 
D)  Estate planning

Question 16

Which of the following is typically a funding choice in profit-sharing plans?

Accepted Answer

A)  Based on percentage of employee earnings 
B)  Based on years of service 
C)  Based on sliding percentage of purchases 
D)  Based on sliding percentage of sales 
A)  Based on percentage of employee earnings 
B)  Based on years of service 
C)  Based on sliding percentage of purchases 
D)  Based on sliding percentage of sales

Question 17

Merchandise, gift certificates, and travel are the most frequently used incentives for recognition awards.

Accepted Answer

A) True 
 B)False

Question 18

Compensation given to an executive if he or she is forced to leave an organization is called golden parachute.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a disadvantage of profit-sharing plans?

Accepted Answer

A)  Employees must trust that management will accurately disclose financial and profit information. 
B)  Employees are taxed heavily on the income that they generate from profit sharing plans. 
C)  Employees cannot access the funds that they receive from profit sharing plans for up to three years. 
D)  Employers get little or no rebate on income tax for choosing profit-sharing plans. 
A)  Employees must trust that management will accurately disclose financial and profit information. 
B)  Employees are taxed heavily on the income that they generate from profit sharing plans. 
C)  Employees cannot access the funds that they receive from profit sharing plans for up to three years. 
D)  Employers get little or no rebate on income tax for choosing profit-sharing plans.

Question 20

Explain the salary-only approach of sales compensation.

Accepted Answer

The salary-only approach is useful when

Describe the two primary ways of distributing group/team incentives.

Which of the following statements is true of a discretionary system of determining bonuses?

A stock option plan gives employees the right to purchase an unlimited number of shares of company stock at a specified exercise price for a limited period of time.

Describe the different types of sales compensation plans.

Which of the following is an allocation choice in profit-sharing plans?

In a stock option plan, if the market price of the stock exceeds the exercise price, _____.

The compensation committee usually is a subgroup of the board of directors that is composed of directors who are currently the officers of the firm.

Which of the following statements is true of group/team incentives?

Describe the elements of executive compensation.

The "clawbacks" provision in the _____ allows a company to recover any incentive-based pay that was paid out during the prior three years if it would not have been paid under restated financial statements.

Entitlement culture is the idea that _____.

Supplemental benefit plans are plans that are available to nonexecutive employees.

Which of the following is a metric of human resources in variable pay plans?

_____ refer to the compensation given to an executive if he or she is forced to leave an organization.

Which of the following is typically classified as a regular benefit?

Which of the following is typically a funding choice in profit-sharing plans?

Merchandise, gift certificates, and travel are the most frequently used incentives for recognition awards.

Compensation given to an executive if he or she is forced to leave an organization is called golden parachute.

Which of the following is a disadvantage of profit-sharing plans?

Explain the salary-only approach of sales compensation.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individualorganization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Unionmanagement Relations

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Exam 12: Variable Pay and Executive Compensation

Describe the two primary ways of distributing group/team incentives.

Which of the following statements is true of a discretionary system of determining bonuses?

A stock option plan gives employees the right to purchase an unlimited number of shares of company stock at a specified exercise price for a limited period of time.

Describe the different types of sales compensation plans.

Which of the following is an allocation choice in profit-sharing plans?

In a stock option plan, if the market price of the stock exceeds the exercise price, _____.

The compensation committee usually is a subgroup of the board of directors that is composed of directors who are currently the officers of the firm.

Which of the following statements is true of group/team incentives?

Describe the elements of executive compensation.

The "clawbacks" provision in the _____ allows a company to recover any incentive-based pay that was paid out during the prior three years if it would not have been paid under restated financial statements.

Entitlement culture is the idea that _____.

Supplemental benefit plans are plans that are available to nonexecutive employees.

Which of the following is a metric of human resources in variable pay plans?

_____ refer to the compensation given to an executive if he or she is forced to leave an organization.

Which of the following is typically classified as a regular benefit?

Which of the following is typically a funding choice in profit-sharing plans?

Merchandise, gift certificates, and travel are the most frequently used incentives for recognition awards.

Compensation given to an executive if he or she is forced to leave an organization is called golden parachute.

Which of the following is a disadvantage of profit-sharing plans?

Explain the salary-only approach of sales compensation.

Human Resource Management in Organizations

Human Resources Strategy and Planning

Equal Employment Opportunity

Workforce, Jobs, and Job Analysis

Individualorganization Relations and Retention

Recruiting and Labor Markets

Selecting Human Resources

Training Human Resources

Talent, Careers, and Development

Performance Management and Appraisal

Total Rewards and Compensation

Managing Employee Benefits

Risk Management and Worker Protection

Employee Rights and Responsibilities

Unionmanagement Relations

Filters