Question 1

Cafeteria-style plans increase benefits costs for employers.

Accepted Answer

A) True 
 B)False

Question 2

What 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)   These types of plans 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.

Question 3

Vince, an HR manager, conducts a survey to learn which benefits employees value the most. However, he finds that the survey results are difficult to apply. What is the most likely reason?

Accepted Answer

A)   Employees expect to receive benefits that are legally required and widely available.
B)   Software is the only method employees will accept to help them choose their benefits.
C)   The costs of turnover at Vince's company are high.
D)   The employees only value medical insurance.
E)   Employees have very different opinions about what they value.

Question 4

What is an advantage of providing benefits instead of cash compensation?

Accepted Answer

A)   It is simpler to pay compensation in benefits than in cash.
B)   Benefits give greater control to employees over cash compensation.
C)   All companies that provide benefits become eligible for tax breaks by state and federal agencies.
D)   Younger employees place more importance on benefits than cash compensation.
E)   Employers can assemble creative benefits packages that give them a competitive advantage.

Question 5

Rose, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Gary, suggests that Rose would save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which statement weakens Gary's argument?

Accepted Answer

A)   Individual plans are typically offered only to senior executives.
B)   Rates for group insurance are typically lower than those of individual policies.
C)   Rose will not be eligible for other benefits if she does not enroll in a group insurance plan.
D)   Employees get more for their money when they receive insurance as a group benefit.
E)   Rose will get more take-home pay if she opts for a group insurance plan.

Question 6

How do cafeteria-style plans increase costs for employers?

Accepted Answer

A)   Employers pay much higher premiums for an HMO than a preferred health care plan.
B)   Employers are required to pay higher insurance premiums for laid-off workers.
C)   Contributions to PBGC to fund the retirement plan increases under this plan.
D)   Employees select the kind of benefits they expect to need the most.
E)   Employers bear the cost of providing employees with benefits they do not value.

Question 7

In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Jeremy, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which statement strengthens Jeremy's belief?

Accepted Answer

A)   Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees.
B)   The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees.
C)   A top-heavy plan requires faster vesting for non-key employees.
D)   Extending pension plans to employees at all levels will triple the costs.
E)   Pension plans are determined exclusively by state and federal laws.

Question 8

The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees.

Accepted Answer

A) True 
 B)False

Question 9

Kevin is the founder of a new start-up company. He hires mostly young employees who are fresh out of college. He finds that most of his employees are willing to develop their knowledge and skills and would like to take courses to improve themselves. This additional knowledge would benefit Kevin's company, so he decides to encourage this behavior. Which program is Kevin most likely to use in order to do so?

Accepted Answer

A)   tuition reimbursement program
B)   employee wellness program
C)   worker's compensation program
D)   short-term vesting program
E)   mature education program

Question 10

The employee benefits at Arvin Shine, a high tech firm, includes a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals?

Accepted Answer

A)   by meeting the standards of most U.S. businesses
B)   by making the workplace more family-friendly
C)   by protecting the company against charges of employment discrimination
D)   by complying with legal requirements for benefits
E)   by helping employees cope with demanding, high-stress jobs

Question 11

Under the Americans with Disabilities Act, which employer is most likely to face legal challenges?

Accepted Answer

A)   an employer who switches to a risk-based policy after hiring a disabled employee
B)   an employer who sets guidelines for using waivers
C)   an employer who discriminates against workers over age 40 in providing pay or benefits
D)   an employer who has risk-based insurance and then hires an employee with a disability
E)   an employer who does not have risk-based insurance

Question 12

Which strategy can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits?

Accepted Answer

A)   using more independent contractors rather than hiring additional employees
B)   limiting the coverage on life insurance based upon an employee's age
C)   using more full-time rather than part-time employees
D)   recruiting new employees instead of demanding overtime from existing employees
E)   substituting HMO and PPO plans with traditional health insurance plans

Question 13

Which organizations benefit when switching from a defined-benefit plan to cash balance plans?

Accepted Answer

A)   organizations with many experienced employees
B)   organizations with a few skilled employees
C)   organizations with many young employees
D)   organizations with many retired employees
E)   organizations with highly skilled, young employees

Question 14

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 plans

Question 15

Under a 401(k)  plan, the ________ is responsible for choosing specific investments.

Accepted Answer

A)   employee
B)   PBGC
C)   ERISA fiduciary advisor
D)   financial institution handling the account
E)   employer

Question 16

Jerome is the CEO of a magazine publishing company. He wants to provide benefits for his employees but would still like to control his company's costs. Ashley, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Jerome doing so?

Accepted Answer

A)   He will save time by using software packages to offer benefits packages.
B)   He will avoid the cost of providing employees with benefits they don't value.
C)   Having a non-standardized plan will make Jerome's company seem cutting-edge.
D)   Employees of the company, including Jerome, will be given more vacation days.
E)   Costs will be easy to estimate since all benefits options will be taken into consideration.

Question 17

Two management students, Gunther and Jake, discuss the pros and cons of employee benefits. Gunther states that unemployment insurance is more advantageous to employees than it is to employers, while Jake argues that employers receive more rewards from it. Which statement weakens Jake's argument?

Accepted Answer

A)   Unemployment insurance provides employers a competitive advantage in the talent market.
B)   The amount of an employer's unemployment insurance tax depends on the number of employees.
C)   Federal and state taxes paid by employers fund most of unemployment insurance.
D)   Unemployment insurance does not provide assistance to unemployed workers looking for new jobs.
E)   Unemployment insurance does not include payments to offset lost income during voluntary unemployment.

Question 18

What 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 less than that of long-term plans.
C)   It pays about 50 to 70 percent 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.

Question 19

What is true of short-term disability insurance?

Accepted Answer

A)   It pays the full amount of a disabled employee's salary for a minimum period of one year.
B)   It pays double the full salary of a disabled employee for a period of two months.
C)   Only employees who have been with an organization for less than two years are eligible for short-term disability insurance.
D)   It pays a portion of a disabled employee's salary as benefits for up to six months.
E)   It is only provided to those individuals who work part time.

Question 20

In which situation do workers become eligible for unemployment benefits?

Accepted Answer

A)   when they have worked only for a few days
B)   when they are out of work because they are sick
C)   when they are discharged because of willful misconduct
D)   when they are actively seeking work
E)   when they are out of work because of a labor dispute

Exam 14: Providing Employee Benefits

Rose, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Gary, suggests that Rose would save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which statement weakens Gary's argument?

Correct Answer
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What is true of short-term disability insurance?

Correct Answer
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Vince, an HR manager, conducts a survey to learn which benefits employees value the most. However, he finds that the survey results are difficult to apply. What is the most likely reason?

Correct Answer
verified

The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees.

Correct Answer
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In which situation do workers become eligible for unemployment benefits?

Correct Answer
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What is an advantage of cafeteria-style plans?

Correct Answer
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What is true about disability insurance?

Correct Answer
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Under the Americans with Disabilities Act, which employer is most likely to face legal challenges?

Correct Answer
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What is an advantage of providing benefits instead of cash compensation?

Correct Answer
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Jerome is the CEO of a magazine publishing company. He wants to provide benefits for his employees but would still like to control his company's costs. Ashley, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Jerome doing so?

Correct Answer
verified

Cafeteria-style plans increase benefits costs for employers.

Correct Answer
verified

Which organizations benefit when switching from a defined-benefit plan to cash balance plans?

Correct Answer
verified

Two management students, Gunther and Jake, discuss the pros and cons of employee benefits. Gunther states that unemployment insurance is more advantageous to employees than it is to employers, while Jake argues that employers receive more rewards from it. Which statement weakens Jake's argument?

Correct Answer
verified

Which strategy can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits?

Correct Answer
verified

Correct Answer
verified

How do cafeteria-style plans increase costs for employers?

Correct Answer
verified

The employee benefits at Arvin Shine, a high tech firm, includes a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals?

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
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Under a 401(k) plan, the ________ is responsible for choosing specific investments.

Correct Answer
verified

Exam 14: Providing Employee Benefits

Rose, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Gary, suggests that Rose would save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which statement weakens Gary's argument?

Correct AnswerverifiedShow Answer

What is true of short-term disability insurance?

Correct AnswerverifiedShow Answer

Vince, an HR manager, conducts a survey to learn which benefits employees value the most. However, he finds that the survey results are difficult to apply. What is the most likely reason?

Correct AnswerverifiedShow Answer

The Family and Medical Leave Act of 1993 requires organizations with 50 or more employees within a 75-mile radius to provide as much as 12 weeks of unpaid leave to qualifying employees.

Correct AnswerverifiedShow Answer

In which situation do workers become eligible for unemployment benefits?

Correct AnswerverifiedShow Answer

What is an advantage of cafeteria-style plans?

Correct AnswerverifiedShow Answer

What is true about disability insurance?

Correct AnswerverifiedShow Answer

Under the Americans with Disabilities Act, which employer is most likely to face legal challenges?

Correct AnswerverifiedShow Answer

What is an advantage of providing benefits instead of cash compensation?

Correct AnswerverifiedShow Answer

Jerome is the CEO of a magazine publishing company. He wants to provide benefits for his employees but would still like to control his company's costs. Ashley, the head of the HR department, suggests implementing a cafeteria-style plan. What would be the most likely benefit of Jerome doing so?

Correct AnswerverifiedShow Answer

Cafeteria-style plans increase benefits costs for employers.

Correct AnswerverifiedShow Answer

Which organizations benefit when switching from a defined-benefit plan to cash balance plans?

Correct AnswerverifiedShow Answer

Two management students, Gunther and Jake, discuss the pros and cons of employee benefits. Gunther states that unemployment insurance is more advantageous to employees than it is to employers, while Jake argues that employers receive more rewards from it. Which statement weakens Jake's argument?

Correct AnswerverifiedShow Answer

Which strategy can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

How do cafeteria-style plans increase costs for employers?

Correct AnswerverifiedShow Answer

The employee benefits at Arvin Shine, a high tech firm, includes a basketball team, a gym, and an on-site massage therapist. In what way are these benefits most likely to support the company's business goals?

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

Under a 401(k) plan, the ________ is responsible for choosing specific investments.

Correct AnswerverifiedShow Answer

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