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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

A) Compensation costs eventually stabilize and become a consistent percent of revenue.
B) Compensation costs and revenue increase at approximately the same rate.
C) Compensation costs eventually decrease as a percent of revenue, increasing profit growth.
D) Compensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.

2. What was the Bennett Amendment intended to do?

A) Prohibit gender-based discrimination
B) Eliminate the potential conflict between Title VII and EPA
C) Make it easier to enforce the Equal Pay Act
D) Make the regulations covered under Title VII of the Civil Rights Act of 1964 more strict

3. What is one reason that it is important to perform a periodic audit of processes and results?

A) It builds in a process of continuous improvement
B) It is required in determining increase budgets
C) It determines what information and data sources will be used in the audit
D) It is required by the Department of Labor

4. Regarding presentations to executives, which of the following is most accurate?

A) Use multiple media
B) Keep them brief
C) Include all details related to the issue
D) Leave backup data out of the presentation so there is time to develop an effective response to unexpected questions

5. Which of the following benefits are usually offered at the discretion of the employer?

A) Social security programs
B) Disability (occupational)
C) Unemployment insurance
D) Retirement plans

Solutions: