Question 1

What is the role of government impetus in the development of employee benefits?

Accepted Answer

Three employee benefits are mandated by ...

Question 2

Which of the following statements is true of employee benefits?

Accepted Answer

A)  Employers can substitute insurance benefits for job security.
B)  Group insurance benefits has relatively easy qualification standards.
C)  Most employee benefits are taxable.
D)  Many group-based benefits are obtained at a higher rate than could be obtained by employees acting on their own.

Question 3

The first issue in setting up a benefits package is:

Accepted Answer

A)  finding out who should be protected or benefited.
B)  figuring out how much choice should employees have among benefits.
C)  determining how benefits should be financed.
D)  choosing legally defensible benefits.

Question 4

What are the major disadvantages of a flexible benefits package?

Accepted Answer

The major disadvantages of a flexible be...

Question 5

_____ are NOT used for determining employee benefit preferences.

Accepted Answer

A)  Demographic data
B)  Product market share data
C)  Employee surveys
D)  Cafeteria-style plans

Question 6

According to available evidence, companies can successfully remain nonunion by offering the same benefits as those provided by unionized firms.

Accepted Answer

A) True 
 B)False

Question 7

The _____ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship.

Accepted Answer

A)  Patient Protection and Affordable Care Act
B)  Family and Medical Leave Act
C)  Health Maintenance Organization Act
D)  Consolidated Omnibus Budget Reconciliation Act

Question 8

A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan.

Accepted Answer

A)  a select choice
B)  a no-deductible
C)  a flexible benefit
D)  a flat dollar benefit

Question 9

_____ is the most frequently used medium for communicating employee benefits.

Accepted Answer

A)  A notice board
B)  A seminar
C)  An employee benefit handbook
D)  A meeting with the chief executive officer

Question 10

If a benefit forecast suggests future cost containment may be difficult, the benefit should:

Accepted Answer

A)  be completely paid for by employees.
B)  be used on a noncontributory basis.
C)  not be used.
D)  be offered to employees only on a cost-sharing basis.

Question 11

Which of the following is an advantage of flexible benefit plans?

Accepted Answer

A)  They require no expenditure from the employers.
B)  They decrease the administrative burdens for employers.
C)  They decrease the costs as employees pick only those benefits they will use resulting in the subsequent high benefit utilization.
D)  They increase the involvement of employees in choosing benefit plans.

Question 12

DrenchFort Corp.is a small company that pays high wages.As its wages are high, it does not provide any benefits.Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees.Which of the following benefits is most likely to reduce turnover?

Accepted Answer

A)  Counseling service
B)  Early retirement plan
C)  Medical coverage
D)  Profit-sharing plan

Question 13

Which of the following is NOT a disadvantage of flexible benefit programs?

Accepted Answer

A)  Administrative burdens and expenses increase.
B)  Adverse selection of benefits by employees results in increase in costs.
C)  New benefits are more difficult to introduce.
D)  Flexible benefits are subject to nondiscrimination requirements in Section 125 of Internal Revenue Code.

Question 14

The favorable tax status granted to many benefits is safe from the threat of recurrent tax reform proposals.

Accepted Answer

A) True 
 B)False

Question 15

A disadvantage of flexible benefit programs is that they increase administrative burdens.

Accepted Answer

A) True 
 B)False

Exam 12: The Benefit Determination Process

DrenchFort Corp.is a small company that pays high wages.As its wages are high, it does not provide any benefits.Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees.Which of the following benefits is most likely to reduce turnover?

Correct Answer
verified

Which of the following is an advantage of flexible benefit plans?

Correct Answer
verified

A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan.

Correct Answer
verified

What are the major disadvantages of a flexible benefits package?

Correct Answer
verified
The major disadvantages of a flexible be...
View Answer

Which of the following is NOT a disadvantage of flexible benefit programs?

Correct Answer
verified

The _____ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship.

Correct Answer
verified

The favorable tax status granted to many benefits is safe from the threat of recurrent tax reform proposals.

Correct Answer
verified

If a benefit forecast suggests future cost containment may be difficult, the benefit should:

Correct Answer
verified

_____ are NOT used for determining employee benefit preferences.

Correct Answer
verified

_____ is the most frequently used medium for communicating employee benefits.

Correct Answer
verified

What is the role of government impetus in the development of employee benefits?

Correct Answer
verified
Three employee benefits are mandated by ...
View Answer

A disadvantage of flexible benefit programs is that they increase administrative burdens.

Correct Answer
verified

According to available evidence, companies can successfully remain nonunion by offering the same benefits as those provided by unionized firms.

Correct Answer
verified

The first issue in setting up a benefits package is:

Correct Answer
verified

Which of the following statements is true of employee benefits?

Correct Answer
verified

Exam 12: The Benefit Determination Process

DrenchFort Corp.is a small company that pays high wages.As its wages are high, it does not provide any benefits.Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees.Which of the following benefits is most likely to reduce turnover?

Correct AnswerverifiedShow Answer

Which of the following is an advantage of flexible benefit plans?

Correct AnswerverifiedShow Answer

A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan.

Correct AnswerverifiedShow Answer

What are the major disadvantages of a flexible benefits package?

Correct AnswerverifiedThe major disadvantages of a flexible be...View AnswerShow Answer

Which of the following is NOT a disadvantage of flexible benefit programs?

Correct AnswerverifiedShow Answer

The _____ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship.

Correct AnswerverifiedShow Answer

The favorable tax status granted to many benefits is safe from the threat of recurrent tax reform proposals.

Correct AnswerverifiedShow Answer

If a benefit forecast suggests future cost containment may be difficult, the benefit should:

Correct AnswerverifiedShow Answer

_____ are NOT used for determining employee benefit preferences.

Correct AnswerverifiedShow Answer

_____ is the most frequently used medium for communicating employee benefits.

Correct AnswerverifiedShow Answer

What is the role of government impetus in the development of employee benefits?

Correct AnswerverifiedThree employee benefits are mandated by ...View AnswerShow Answer

A disadvantage of flexible benefit programs is that they increase administrative burdens.

Correct AnswerverifiedShow Answer

According to available evidence, companies can successfully remain nonunion by offering the same benefits as those provided by unionized firms.

Correct AnswerverifiedShow Answer

The first issue in setting up a benefits package is:

Correct AnswerverifiedShow Answer

Which of the following statements is true of employee benefits?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The major disadvantages of a flexible be...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Three employee benefits are mandated by ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified