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WorldatWork Regulatory Environments for Compensation Programs Sample Questions (Q88-Q93):

NEW QUESTION # 88
What best describes an effective core technique for communicating with executives?

A. Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.
B. Recommend a solution that will solve the issue and explain why it is the best solution available.
C. Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.
D. Focus on negative issues first, such as compensation costs exceeding budget, to get their attention

Answer: B

NEW QUESTION # 89
Which of the following statements best describes defined contribution (DC) plans?

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

Answer: D

NEW QUESTION # 90
Which of the following is a type of variable pay?

A. Piece rate
B. Hourly rate
C. Salary
D. Commissions

Answer: D

NEW QUESTION # 91
What do profits, equity and debt all have in common?

A. They are all reported on the balance sheet.
B. They all incur the same costs to the business.
C. They are all sources of capital.
D. Nothing. Each of these is a different financial metric.

Answer: C

NEW QUESTION # 92
How do commissions typically differ from annual incentives for non-executive employees?

A. They tend to make up the larger portion of an employee's total compensation.
B. They are intended to align the interests of the employee with those of the organization.
C. They are based on a predetermined performance and reward schedule.
D. They are offered to motivate employee performance.

Answer: A

NEW QUESTION # 93
......

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