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Questions # 21:

Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?

Options:

A.

In the methods and processes used to make pay decisions

B.

In the details of their individual compensation packages

C.

In the overall program objectives

D.

In the differences in pay levels for the different levels of the organization

Expert Solution
Questions # 22:

What do profits, equity and debt all have in common?

Options:

A.

They are all reported on the balance sheet.

B.

They are all sources of capital.

C.

They all incur the same costs to the business.

D.

Nothing. Each of these is a different financial metric.

Expert Solution
Questions # 23:

Why are lump-sum increases generally used?

Options:

A.

To control annual fixed costs from base pay adjustments

B.

To elevate employees who are below the midpoint in the range

C.

To reward employees under short-term incentive plans

D.

To make up for benefits not provided by the organization   

Expert Solution
Questions # 24:

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

Options:

A.

The most that the member will be liable for in relation to co-insurance

B.

The maximum the plan will pay if the member is covered by another insurance plan

C.

The limit the member will be required to pay at each doctor visit

D.

The lifetime limit for benefits to any one employee   

Expert Solution
Questions # 25:

Which of the following scenarios best describes a contract worker?

Options:

A.

A technician who works a scheduled shift and performs tasks as assigned according to specifications.

B.

A computer programmer who telecommutes, uses her own equipment and works for multiple employers

C.

An accounts payable specialist who works at the company site utilizing an internal A/P system and pays vendors according to company procedures.

Expert Solution
Questions # 26:

What is a primary objective of profit-sharing and performance-sharing variable pay plans?

Options:

A.

To achieve organizational cost savings through base pay reductions

B.

To increase employee identification with the organization's success

C.

To defer compensation expenses to future reporting periods

D.

To reward individual employees for some significant contribution   

Expert Solution
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