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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What do working capital metrics evaluate?

A) A company's mean capital expenditure per employee
B) The change in working capital over a specific period of time, typically one year
C) The amount of cash needed to meet the company's short-term obligations
D) A company's efficiency in converting short-term capital into cash

2. Which of the following agencies enforces the FLSA?

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

3. Regarding medical plans, what is the out-of-pocket maximum?

A) The limit the member will be required to pay at each doctor visit
B) The most that the member will be liable for in relation to co-insurance
C) The lifetime limit for benefits to any one employee
D) The maximum the plan will pay if the member is covered by another insurance plan

4. Upon which criterion are step increases typically based?

A) Skills
B) Individual performance
C) Longevity
D) Market adjustment

5. 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 remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.
D) Compensation costs eventually decrease as a percent of revenue, increasing profit growth.

Solutions: