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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

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

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

2. Which of the following is the earnings available to equity owners after paying debt and taxes?

A) Operating profit
B) EPS
C) EBIT
D) Net income

3. Which of the following agencies enforces the FLSA?

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

4. Which of the following statements best describes defined contribution (DC) plans?

A) The employee assumes the risk for the investments.
B) The benefit is based on a formula that considers pay and service.
C) They require complex actuarial calculations and assumptions.
D) They generally provide better benefits to employees with longer service.

5. Which of the following combines traditionally segregated time off and leave programs into one policy covering a single block of time?

A) Severance allowances
B) Paid time off (PTO) bank
C) Personal leave
D) Sabbatical

Solutions: