Question 1

What role can intrinsic rewards play in an organization's overall compensation program?

Accepted Answer

A)   They can increase worker pay.
B)   They can serve as powerful motivators.
C)   They can help employees achieve promotions more rapidly.
D)   They can help reduce the cost of providing mandatory worker benefits. B

Question 2

In general, how many full-time staff members must a worker supervise if that worker is to be considered an exempt executive employee?

Accepted Answer

A)   1
B)   2
C)   3
D)   4 B

Question 3

Which is an example of an extrinsic reward for an operation's employees?

Accepted Answer

A)   Job security
B)   Job freedom
C)   Empowerment
D)   Voluntary benefits D

Question 4

Which classification of employees would typically be prohibited from participating in a tip-pooling arrangement?

Accepted Answer

A)   Cooks
B)   Bussers
C)   Wait staff
D)   Hostesses

Question 5

Managers seeking to develop compensation programs designed to link pay to employee performance will

Accepted Answer

A)   establish a merit pay system.
B)   include a tip pooling arrangement.
C)   exclude a tip pooling arrangement.
D)   pay wages higher than the local average.

Question 6

A worker earns $10 per hour and works 45 hours in one week. What is the minimum amount this worker must be paid for the week's work?

Accepted Answer

A)   $450
B)   $475
C)   $500
D)   $525

Question 7

Which is an example of a hospitality-specific employment benefit?

Accepted Answer

A)   401(k)  program
B)   Social Security
C)   Discounted hotel room rates
D)   Employee assistance programs

Question 8

When may "exempt" salaried workers' weekly or monthly pay be reduced?

Accepted Answer

A)   When they are sent home from work early
B)   When they are scheduled for three consecutive days off
C)   When they have been suspended for a work place rule violation
D)   When they work less than 40 hours in a single one-week pay period

Question 9

Employee assistance plans are designed to provide employees with

Accepted Answer

A)   low-cost housing loans.
B)   expanded health insurance coverage.
C)   counseling for a variety of life issues.
D)   paycheck advances with lower repayment terms.

Question 10

The amount of money workers earn significantly affects their

Accepted Answer

A)   perceptions of self-worth.
B)   ability to change positions.
C)   chances of being promoted.
D)   performance in training sessions.

Question 11

The pay range for a specific job category in a community is referred to as

Accepted Answer

A)   a tip pool.
B)   merit pay.
C)   living wages.
D)   the local wage rate.

Question 12

Which law allows affected employees to retain their group health insurance coverage if they lose their jobs?

Accepted Answer

A)   Fair Labor Standards Act
B)   Occupational Safety and Health Act
C)   Patient Protection and Affordable Care Act
D)   Consolidated Omnibus Budget Reconciliation Act

Question 13

What is the lowest amount of money employees covered by the FLSA, state, or local laws may be paid by employers?

Accepted Answer

A)   Base pay
B)   Merit pay
C)   Minimum wage
D)   Prevailing wage

Question 14

When the minimum wage rates established by the federal, state, and city are not the same, the manager is required to pay the

Accepted Answer

A)   city rate.
B)   federal rate.
C)   lowest of the three rates.
D)   highest of the three rates.

Question 15

Organizations are exempt from the Patient Protection and Affordable Care Act (ACA) penalties if they have fewer than _________ full-time workers.

Accepted Answer

A)   25
B)   50
C)   75
D)   100

Question 16

If an employee is termed as being "exempt," this means that he or she is not

Accepted Answer

A)   entitled to paid time-off.
B)   eligible for unemployment benefits.
C)   required to submit to a background check.
D)   subject to the overtime provisions of the FLSA.

Question 17

What is always true about a food service employee's tips?

Accepted Answer

A)   They are taxable income.
B)   They are nontaxable income.
C)   They are controlled by managers.
D)   They cannot include any mandatory tip pooling arrangements.

Question 18

Under federal law, income from tips can constitute what percentage of an employee's minimum pay rate?

Accepted Answer

A)   30%
B)   40%
C)   50%
D)   60%

Question 19

Who determines the size of a service charge imposed on guests in a food service operation?

Accepted Answer

A)   Guests
B)   Servers
C)   Managers
D)   Members of the operation's tip pool

Question 20

When guests include a server tip while paying their bills with a credit or debit (payment) card

Accepted Answer

A)   the tip must be placed in a tip pool.
B)   the guest's server must receive 100% of the tip.
C)   the guest's server must receive no less than 98% of the tip.
D)   owners of the operation may reduce the tip by an amount equal to charges levied by the card company.

Exam 8: Compensation Programs