Question 1

Stan,the CEO of a company,considers dropping medical insurance from the list of benefits provided to employees.Alisha,the operations director,disagrees with Stan by stating that medical insurance is a high-value benefit.Which of the following supports Alisha's statement?

Accepted Answer

A)   Companies that do not provide medical insurance cannot have their retirement plans considered as qualified plans.
B)   Most employees do not appreciate what health insurance costs the employer.
C)   Medical insurance plans do not cover mental illness.
D)   Health insurance rate is higher than general insurance rate.
E)   Employees usually realize that surgery or a major illness can be financially devastating.F) A) and E)
G) A) and B)

Question 2

Grey Inc.is a start-up located in Orlando.It offers highly beneficial pension plans to its employees.Which of the following categories of employees is the company most likely to attract through its pension benefits?

Accepted Answer

A)   Women of childbearing age
B)   Disabled workers
C)   Older people
D)   Young people
E)   Unmarried peopleF) B) and E)
G) A) and D)

Question 3

Disability insurance payments are usually less than 25 percent of the employee's salary.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a requirement set for employers under the Financial Accounting Standards Board (FASB) standards?

Accepted Answer

A)   Employers must fund benefits on a pay-as-you-go basis.
B)   Benefits must not appear as future cost obligations.
C)   Employers should encourage employees to participate in management functions.
D)   Financial statements should be made in such a way that outsiders cannot understand them.
E)   Employers must set aside the funds they expect to need for benefits to be paid after retirement.F) A) and B)
G) D) and E)

Question 5

Jack has to decide between two jobs that provide equal pay.He decides to compare the healthcare benefits provided by both jobs to arrive at a decision.He wants to choose the job that offers him a flexible spending account over the job that offers him managed care.Which of the following,if true,strengthens his decision?

Accepted Answer

A)   With managed care, the insurer makes decisions about health care, which helps avoid unnecessary procedures.
B)   Money in flexible spending accounts is not taxed, so employees get more take-home pay.
C)   In flexible spending accounts, employees will get back the money they do not spend.
D)   Flexible spending account is not helpful if employees have unpredictable health care expenses.
E)   To avoid taxation of the money in a flexible spending account, the money must meet IRS requirements.F) B) and E)
G) A) and B)

Question 6

Because benefits packages are more complex than pay structures,they are harder for employees to understand and appreciate.

Accepted Answer

A) True 
 B)False

Question 7

What are flexible benefit plans? What are their advantages and disadvantages?

Accepted Answer

Organizations can address differences in...

Question 8

Ravi is the CEO of a magazine publishing company.He wants to diversify his workforce and bring in more ethnically diverse employees into his company as he believes that exposure to people from different cultures is likely to increase the creativity of his workforce.Which of the following types of plans should Ravi adopt to allow flexibility?

Accepted Answer

A)   Defined-benefit plan
B)   Cafeteria-style plan
C)   Vested-benefit plan
D)   Worker's compensation plan
E)   Cash compensation planF) B) and D)
G) A) and D)

Question 9

John is the owner of The Round,a restaurant.He decides to increase employee motivation by introducing benefit packages.However,Nina,the manager,suggests that employees will be more motivated if John increases their actual wages.Which of the following statements,if true,strengthens Nina's argument?

Accepted Answer

A)   John's competitor, Mark, gives many benefits to his employees.
B)   The state has introduced mandatory requirements for employee benefits.
C)   Benefit packages are more difficult to understand by employees than pay structures.
D)   Most of the employees at The Round belong to the age group that looks forward to pensions.
E)   Employees do not prefer cash compensation due to higher tax rates in the state.F) A) and B)
G) A) and E)

Question 10

Steve and Cathy are managers at an advertising firm.Steve proposes that the company adopt defined-benefit plans to attract and retain its employees,and Cathy opposes his view.Which of the following statements will strengthen Steve's argument?

Accepted Answer

A)   All the employees are under the age of 30.
B)   The nature of work demands college graduates.
C)   The firm employs experienced, older people.
D)   The firm employs young and creative minds.
E)   The firm mainly employs freelancers.F) None of the above
G) A) and D)

Question 11

The use of wellness programs and consumer-directed health plans in an organization reflect its objective of controlling the cost of healthcare benefits.

Accepted Answer

A) True 
 B)False

Question 12

Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

Accepted Answer

A)   tuition reimbursement programs
B)   paid vacations
C)   pension plans
D)   quarterly promotions
E)   medical insurance plansF) B) and D)
G) D) and E)

Question 13

Jim is the CEO of a company that is expanding overseas.He considers introducing a cafeteria-style benefits plan to cater to the company's diverse workforce.However,the HR team brings up the concern of higher expenses involved in this type of benefits.Which of the following is Jim likely to do to lower costs at the initial stage?

Accepted Answer

A)   Opt for communication methods that do not stress the value of each benefit
B)   Avoid standardized plans available for employers opting for cafeteria-style benefits
C)   Use software packages to design the plan
D)   Discourage employees from choosing lower-cost options
E)   Encourage employees to choose benefits they need the mostF) A) and E)
G) B) and D)

Question 14

On average,out of every dollar spent by a company on employee compensation,more than _____ cents goes to employee benefits.

Accepted Answer

A)   75
B)   30
C)   50
D)   15
E)   20F) A) and E)
G) B) and D)

Question 15

Which of the following is an advantage of cafeteria-style plans?

Accepted Answer

A)   Employees do not have to select their individual plans.
B)   Employees can get a better understanding of the value of benefits provided.
C)   They have lower administrative costs.
D)   Since employees will select the benefits that they need the most, it reduces the overall costs.
E)   When companies provide cafeteria-style plans, they do not have to pay unemployment insurance tax.F) None of the above
G) C) and E)

Question 16

Which of the following is true about disability insurance?

Accepted Answer

A)   It benefits the disabled employee only for the first year of disability.
B)   Payments under short-term plans are lesser than that of long-term plans.
C)   It pays about 50% to 70% percentage of the employee's salary in case of disability.
D)   Most employers offer long-term disability plans.
E)   It offers coverage when the employee's dependent is disabled.F) A) and B)
G) All of the above

Question 17

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called:

Accepted Answer

A)   preferred provider plans.
B)   cafeteria-style plans.
C)   defined-benefit plans.
D)   flexible spending accounts.
E)   cash balance plans.F) C) and E)
G) A) and C)

Question 18

Cafeteria-style plans increase benefits costs for employers.

Accepted Answer

A) True 
 B)False

Question 19

The addition of creative benefits packages for employees provides employers a competitive edge in acquiring and retaining talented employees in their organization.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following must be true for a pension plan to be deemed as a qualified plan?

Accepted Answer

A)   It must not discriminate in favor of an organization's highly compensated employees.
B)   It must not be a cafeteria-style plan.
C)   It should include elder care and child care.
D)   It has to be a defined-contribution plan.
E)   It has to be a defined-benefit plan that requires most of the funding to come from the employer.F) C) and D)
G) D) and E)

Exam 14: Providing Employee Benefits

Cafeteria-style plans increase benefits costs for employers.

Correct Answer
verified

The use of wellness programs and consumer-directed health plans in an organization reflect its objective of controlling the cost of healthcare benefits.

Correct Answer
verified

The addition of creative benefits packages for employees provides employers a competitive edge in acquiring and retaining talented employees in their organization.

Correct Answer
verified

Which of the following is an advantage of cafeteria-style plans?

Correct Answer
verified

John is the owner of The Round,a restaurant.He decides to increase employee motivation by introducing benefit packages.However,Nina,the manager,suggests that employees will be more motivated if John increases their actual wages.Which of the following statements,if true,strengthens Nina's argument?

Correct Answer
verified

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called:

Correct Answer
verified

Stan,the CEO of a company,considers dropping medical insurance from the list of benefits provided to employees.Alisha,the operations director,disagrees with Stan by stating that medical insurance is a high-value benefit.Which of the following supports Alisha's statement?

Correct Answer
verified

Because benefits packages are more complex than pay structures,they are harder for employees to understand and appreciate.

Correct Answer
verified

Which of the following is true about disability insurance?

Correct Answer
verified

Grey Inc.is a start-up located in Orlando.It offers highly beneficial pension plans to its employees.Which of the following categories of employees is the company most likely to attract through its pension benefits?

Correct Answer
verified

What are flexible benefit plans? What are their advantages and disadvantages?

Correct Answer
verified
Organizations can address differences in...
View Answer

Which of the following is a requirement set for employers under the Financial Accounting Standards Board (FASB) standards?

Correct Answer
verified

Correct Answer
verified

Which of the following must be true for a pension plan to be deemed as a qualified plan?

Correct Answer
verified

Disability insurance payments are usually less than 25 percent of the employee's salary.

Correct Answer
verified

Steve and Cathy are managers at an advertising firm.Steve proposes that the company adopt defined-benefit plans to attract and retain its employees,and Cathy opposes his view.Which of the following statements will strengthen Steve's argument?

Correct Answer
verified

Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

On average,out of every dollar spent by a company on employee compensation,more than _____ cents goes to employee benefits.

Correct Answer
verified

Exam 14: Providing Employee Benefits

Cafeteria-style plans increase benefits costs for employers.

Correct AnswerverifiedShow Answer

The use of wellness programs and consumer-directed health plans in an organization reflect its objective of controlling the cost of healthcare benefits.

Correct AnswerverifiedShow Answer

The addition of creative benefits packages for employees provides employers a competitive edge in acquiring and retaining talented employees in their organization.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of cafeteria-style plans?

Correct AnswerverifiedShow Answer

John is the owner of The Round,a restaurant.He decides to increase employee motivation by introducing benefit packages.However,Nina,the manager,suggests that employees will be more motivated if John increases their actual wages.Which of the following statements,if true,strengthens Nina's argument?

Correct AnswerverifiedShow Answer

Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called:

Correct AnswerverifiedShow Answer

Stan,the CEO of a company,considers dropping medical insurance from the list of benefits provided to employees.Alisha,the operations director,disagrees with Stan by stating that medical insurance is a high-value benefit.Which of the following supports Alisha's statement?

Correct AnswerverifiedShow Answer

Because benefits packages are more complex than pay structures,they are harder for employees to understand and appreciate.

Correct AnswerverifiedShow Answer

Which of the following is true about disability insurance?

Correct AnswerverifiedShow Answer

Grey Inc.is a start-up located in Orlando.It offers highly beneficial pension plans to its employees.Which of the following categories of employees is the company most likely to attract through its pension benefits?

Correct AnswerverifiedShow Answer

What are flexible benefit plans? What are their advantages and disadvantages?

Correct AnswerverifiedOrganizations can address differences in...View AnswerShow Answer

Which of the following is a requirement set for employers under the Financial Accounting Standards Board (FASB) standards?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following must be true for a pension plan to be deemed as a qualified plan?

Correct AnswerverifiedShow Answer

Disability insurance payments are usually less than 25 percent of the employee's salary.

Correct AnswerverifiedShow Answer

Steve and Cathy are managers at an advertising firm.Steve proposes that the company adopt defined-benefit plans to attract and retain its employees,and Cathy opposes his view.Which of the following statements will strengthen Steve's argument?

Correct AnswerverifiedShow Answer

Most organizations offer _____ to encourage learning and attract the kinds of employees who wish to develop their knowledge and skills.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On average,out of every dollar spent by a company on employee compensation,more than _____ cents goes to employee benefits.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified
Organizations can address differences in...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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