Question 1

The Improshare approach uses employee committees to calculate and pass on savings to the employees.

Accepted Answer

A) True 
 B)False

Question 2

The straight commission system combines the stability of a salary with the performance aspect of a commission.

Accepted Answer

A) True 
 B)False

Question 3

Gainsharing is the system of _____.

Accepted Answer

A)  treating all employees as equals irrespective of their productivity and the gains they bring 
B)  sharing with employees the gains in profits and productivity equally 
C)  rating employees on the basis of their productivity and the profits they bring 
D)  sharing with employees greater-than-expected gains in profits and productivity

Question 4

The "clawbacks" provision in Civil Rights Act of 1964 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) True 
 B)False

Question 5

According to the provisions of the _____, publically listed companies now must allow shareholders to vote on executive compensation.

Accepted Answer

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

Question 6

Why do employers use variable pay?

Accepted Answer

The answer of Why do employers use variable pay?...

Question 7

Cost reduction is classified as a group/team incentive.

Accepted Answer

A) True 
 B)False

Question 8

Describe the challenges faced by group/team incentives.

Accepted Answer

The answer of Describe the challenges faced by group/team incentives....

Question 9

Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Accepted Answer

A)  It provided organizational incentives; now it provides individual incentives. 
B)  It provided organizational incentives; now it provides group incentives. 
C)  It provided organizational incentives; now also it provides the same. 
D)  It provided individual incentives; now also it provides the same.

Question 10

Describe the primary objectives of profit sharing plans.

Accepted Answer

The answer of Describe the primary objectives of profit sharing...

Question 11

The Scanlon plan approach sets group piece-rate standards and pays weekly bonuses when those standards are exceeded.

Accepted Answer

A) True 
 B)False

Question 12

Profitsharing distributes some portion of organizational profits to employees.

Accepted Answer

A) True 
 B)False

Question 13

Group incentives is least likely to work if _____.

Accepted Answer

A)  most of the members are free riders 
B)  cooperation is necessary to do the job 
C)  the reward is distributed equally among the members 
D)  the reward involved is in the form of cash

Question 14

Which of the following is typically classified as a supplemental benefit plan?

Accepted Answer

A)  Health insurance 
B)  Estate planning 
C)  Retirement insurance 
D)  Basic salary

Question 15

The most prevalent forms of organization-wide incentives are piece-rate systems, sales commissions, and individual bonuses.

Accepted Answer

A) True 
 B)False

Question 16

According to the Dodds-Frank Act, publicly listed companies now must allow shareholders to vote on executive compensation.

Accepted Answer

A) True 
 B)False

Question 17

The Scanlon plan typically _____.

Accepted Answer

A)  uses employee committees to calculate and pass on savings to the employees 
B)  sets group piece-rate standards and pays weekly bonuses when those standards
Are exceeded 
C)  identifies favorable employee behavior and rewards employees who adhere to the standards 
D)  uses employee unions to encourage and promote a positive environment in an organization

Question 18

Explain perquisites.

Accepted Answer

The answer of Explain perquisites....

Question 19

Stock option plans give employees the right to purchase:

Accepted Answer

A)  an unlimited number of shares of company stock at a specified exercise price for a limited period of time. 
B)  an unlimited number of shares of company stock at a specified exercise price for an unlimited period of time. 
C)  a fixed number of shares of company stock at a specified exercise price for a limited period of time. 
D)  a fixed number of shares of company stock at a specified exercise price for an unlimited period of time.

Question 20

Group Viewer LLC, a software company, provides profit sharing plans for its employees. After organizational restructuring, the management has decided to replace the profit sharing plan with commissions for each employee. Which of the following is true of Group Viewer LLC?

Accepted Answer

A)  It provided individual incentives; now it provides group incentives. 
B)  It provided individual incentives; now it provides organizational incentives. 
C)  It provided group incentives; now it provides individual incentives. 
D)  It provided organizational incentives; now it provides individual incentives.

Exam 12: Variable Pay and Executive Compensation

The Improshare approach uses employee committees to calculate and pass on savings to the employees.

The straight commission system combines the stability of a salary with the performance aspect of a commission.

Gainsharing is the system of _____.

The "clawbacks" provision in Civil Rights Act of 1964 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.

According to the provisions of the _____, publically listed companies now must allow shareholders to vote on executive compensation.

Why do employers use variable pay?

Cost reduction is classified as a group/team incentive.

Describe the challenges faced by group/team incentives.

Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Describe the primary objectives of profit sharing plans.

The Scanlon plan approach sets group piece-rate standards and pays weekly bonuses when those standards are exceeded.

Profitsharing distributes some portion of organizational profits to employees.

Group incentives is least likely to work if _____.

Which of the following is typically classified as a supplemental benefit plan?

The most prevalent forms of organization-wide incentives are piece-rate systems, sales commissions, and individual bonuses.

According to the Dodds-Frank Act, publicly listed companies now must allow shareholders to vote on executive compensation.

The Scanlon plan typically _____.

Explain perquisites.

Stock option plans give employees the right to purchase:

Group Viewer LLC, a software company, provides profit sharing plans for its employees. After organizational restructuring, the management has decided to replace the profit sharing plan with commissions for each employee. Which of the following is true of Group Viewer LLC?