Question 1

Tiered networks,managed competition and health savings accounts are all examples of choices for _____________

Accepted Answer

A)   menu-driven health care.
B)   flexible benefits.
C)   cafeteria plans.
D)   customer-driven health care.

Question 2

A job ad stating generous benefits leads applicants to place higher value on benefits in choosing among jobs.

Accepted Answer

A) True 
 B)False

Question 3

In 1959,benefits were approximately _____ percent of payroll and in 2010,the percent was _____.

Accepted Answer

A)   30, 50
B)   20, 38
C)   25, 30
D)   30, 60

Question 4

All of the following factors are reasons for the growth of benefits except:

Accepted Answer

A)   foreign competition.
B)   unions.
C)   cost effectiveness of benefits.
D)   government impetus.

Question 5

What is the importance of the demographic approach in determining employee preferences?

Accepted Answer

The demographic approach assumes that de...

Question 6

Which of the following benefits has been found to increase productivity in organizations?

Accepted Answer

A)   Child care
B)   Employee stock options
C)   Health care
D)   No benefit has been found to increase productivity.

Question 7

A customer-driven health care plan that offers employees a choice of medical plans that include systems of varying cost is the:

Accepted Answer

A)   full-defined contribution.
B)   health savings account.
C)   managed competition.
D)   tiered networks.

Question 8

Employers prefer the noncontributory approach to financing benefits because this allows greater control of costs.

Accepted Answer

A) True 
 B)False

Question 9

The average per hour cost of benefits is higher in state and local governments than in the private sector.

Accepted Answer

A) True 
 B)False

Question 10

When future cost containment of a benefit may be a problem,the benefit should be offered on a noncontributory basis.

Accepted Answer

A) True 
 B)False

Question 11

Employers prefer contributory benefits financing for all except which of the following?

Accepted Answer

A)   more favorable tax treatment
B)   A "free good," is less valuable to an employee.
C)   Employees have little personal interest in controlling the costs of a free good.
D)   It helps control benefit costs.

Question 12

All of the following are advantages of flexible benefits except:

Accepted Answer

A)   costs of benefits are contained.
B)   employee understanding of benefits increases.
C)   introduction of new benefits is less costly.
D)   administrative expenses increase.

Question 13

Employees feel their benefits are very fair when they are given extensive communications about benefits but plan design is left to experts.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)   Administrative burdens and expenses increase.
B)   Adverse selection.
C)   New benefits are more difficult to introduce.
D)   Flexible benefits are subject to nondiscrimination requirements in Section 125 of IRS code.

Question 15

All of the following are cost containment practices except:

Accepted Answer

A)   probationary periods.
B)   physical exams of all new hires.
C)   copay.
D)   seeking competitive bids for benefit delivery.

Question 16

Which of the following benefits are not mandated by state or federal legislation?

Accepted Answer

A)   Workers' compensation
B)   Pensions
C)   Social security
D)   Unemployment insurance

Question 17

Illustrate the issue of communication of benefits to the employees.

Accepted Answer

The most frequent method for communicati...

Question 18

A study of the factors affecting MBA students' job choice showed _____ was ranked as least important.

Accepted Answer

A)   geographic location
B)   promotion opportunities
C)   employee benefits
D)   opportunity for advancement

Question 19

According to available evidence,a good strategy for a company to remain non-union is to offer the same benefits as those provided by unionized firms.

Accepted Answer

A) True 
 B)False

Question 20

_____ mandates 12 weeks of leave for all workers at companies that employ 50 or more people.

Accepted Answer

A)   Health Maintenance Act 1973
B)   FLSA 1938
C)   FMLA 1993
D)   COBRA 1984

Exam 12: The Benefit Determination Process

A job ad stating generous benefits leads applicants to place higher value on benefits in choosing among jobs.

Correct AnswerverifiedShow Answer

A customer-driven health care plan that offers employees a choice of medical plans that include systems of varying cost is the:

Correct AnswerverifiedShow Answer

All of the following are advantages of flexible benefits except:

Correct AnswerverifiedShow Answer

The average per hour cost of benefits is higher in state and local governments than in the private sector.

Correct AnswerverifiedShow Answer

What is the importance of the demographic approach in determining employee preferences?

Correct AnswerverifiedThe demographic approach assumes that de...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

In 1959,benefits were approximately _____ percent of payroll and in 2010,the percent was _____.

Correct AnswerverifiedShow Answer

According to available evidence,a good strategy for a company to remain non-union is to offer the same benefits as those provided by unionized firms.

Correct AnswerverifiedShow Answer

Employers prefer contributory benefits financing for all except which of the following?

Correct AnswerverifiedShow Answer

Illustrate the issue of communication of benefits to the employees.

Correct AnswerverifiedThe most frequent method for communicati...View AnswerShow Answer

Which of the following benefits are not mandated by state or federal legislation?

Correct AnswerverifiedShow Answer

When future cost containment of a benefit may be a problem,the benefit should be offered on a noncontributory basis.

Correct AnswerverifiedShow Answer

Employees feel their benefits are very fair when they are given extensive communications about benefits but plan design is left to experts.

Correct AnswerverifiedShow Answer

Which of the following benefits has been found to increase productivity in organizations?

Correct AnswerverifiedShow Answer

All of the following factors are reasons for the growth of benefits except:

Correct AnswerverifiedShow Answer

_____ mandates 12 weeks of leave for all workers at companies that employ 50 or more people.

Correct AnswerverifiedShow Answer

All of the following are cost containment practices except:

Correct AnswerverifiedShow Answer

Tiered networks,managed competition and health savings accounts are all examples of choices for _____________

Correct AnswerverifiedShow Answer

Employers prefer the noncontributory approach to financing benefits because this allows greater control of costs.

Correct AnswerverifiedShow Answer

A study of the factors affecting MBA students' job choice showed _____ was ranked as least important.

Correct AnswerverifiedShow Answer

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The demographic approach assumes that de...
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In 1959,benefits were approximately _ percent of payroll and in 2010,the percent was _.

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The most frequent method for communicati...
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