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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following might be an example of the influence of the Americans with Disabilities Act on compensation?

A) Companies must conduct pre-employment medical exams on all new employees
B) Job descriptions must be written to ensure they cover the critical functions of the job
C) Companies should determine pay based on physical skills
D) Special promotion requirements must be developed for the disabled employee

2. What is the most accurate statement regarding forecasting?

A) It is done primarily by evaluating market conditions and economic indicators.
B) It uses internal and external factors to help answer questions about business expectations for the future.
C) It is a precise estimate of what the future holds for the organization.
D) It is done primarily by using historical revenue and expense data.

3. What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

A) It remains the same.
B) It increases at the same rate as variable costs.
C) It decreases because variable costs are increasing.
D) It becomes increasingly higher as revenues increase.

4. Which of the following are the two primary elements of benefits?

A) Pay for time not worked and income protection programs
B) Unemployment and disability
C) Mental health coverage and health care coverage
D) Defined contribution and defined benefits plans

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

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

Solutions: