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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which government agency enforces the Sherman Antitrust Acton issues related to the workforce?

A) National Labor Relations Board
B) Department of Labor
C) Equal Employment Opportunity Commission
D) Office of Federal Contract Compliance Programs

2. Which of the following best describes present value?

A) The difference between the desired value in the future and the current value as a percentage of the desired value
B) The current value of holdings and how much it will grow over time at a given rate of return
C) The current value of holdings
D) The desired value in the future and what needs to be invested today to realize that amount

3. What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?

A) Automatic
B) General
C) Cost of living
D) Merit

4. Regarding fixed and variable costs, what are Finance's primary concerns?

A) Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.
B) Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.
C) Fixed costs and variable costs are equally important and both should be kept to a minimum.
D) Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

5. Which of the following best describes a factor that has influenced the growth and change in benefits?

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

Solutions: