51. A defined benefit plan:
a) provides an employee with a guaranteed contribution into a retirement plan
b) specifies that an employee has particular health insurance coverage
c) provides an employee a certain level of income based on factors such as their salary and the number of years worked for the organization
d) defines the specific benefits all employees have available through their employer
52. An employer contributes 3 percent of salary into an employee’s retirement
a) a defined payment plan
b) a defined benefit plan
c) a defined contribution plan
d) a vested retirement plan
53. Under a defined benefit plan, the risk to pay for retirement is assumed by:
a) the employer
b) the employee
c) social security
d) worker’s compensation
54. Which of the following is NOT true about 401(k) accounts?
a) contributions into a 401(k) account are tax deferred
b) after retirement, money withdrawn from a 401(k) account is not taxable
c) employees can decide how to invest money in a 401(k) from among investment options offered by their employer
d) 401(k) accounts are highly portable
55. Defined benefit programs make the most sense for organizations with which HR strategies?
a) Bargain Laborer and Free Agent HR strategies
b) Committed Expert and Bargain Laborer HR strategies
c) Loyal Soldier and Free Agent HR strategies
d) Committed Expert and Loyal Soldier HR strategies
56. The most commonly offered employee benefit is:
a) 401(k) plans
b) Health Savings Accounts (HSAs)
c) pay without work
d) health care plans
57. Cafeteria benefits:
a) provide employee discounts in company or area eating establishments
b) allow an employee to choose customized benefits from the benefits offered by their employer
c) allow employers to avoid paying social security contributions for employees
d) are less costly for employers because all employees are covered under the same benefit programs
58. Employees assembling MP3 players are paid a fixed amount for each unit they assemble without a defect. This is an example of:
a) merit pay
b) merit bonuses
c) commissions
d) piece-rate incentives
59. Which of the following is NOT an advantage for organizations with commission based incentives?
a) sales commissions make pay computations relatively easy for organizations to calculate
b) sales commissions are paid only when sales are made
c) commissions shift some of the risk associated with low sales from the organization to the employee
d) commission pay tends to attract employees who excel as sales representatives
60. All of the following are potential disadvantages of commission incentives EXCEPT:
a) people who are paid commissions may tend to think of themselves as free agents with little loyalty to the organization
b) turnover can be high if alternate sales jobs are available
c) sales representatives may overly focus on commission generating activities and avoid performing other important tasks
d) commission incentive systems can result in sales personnel focusing on long-term results