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1. The Baer Corporation hasnt been doing well due to the economy.

1. The Baer Corporation hasn’t...
1. The Baer Corporation hasn’t been doing well due to the
economy. Due to this decrease in performance, the employee
stock options have lost their value. The Compensation Manager
is trying to explain to the employees why this is occurring,
but they have expectations of high returns on their options
because the company has never seen hard financial times.
Which of the following is this an example of?
A. Persistence of belief C. Herding
B. Anchoring/framing D. Pattern recognition
2. The following is a list of shipping clerks and their hourly
wages:
Bernard: $15
Samuel: $12
Barbara: $12
Jessica: $15
The salary range midpoint for shipping clerks is $13.50.
Use this information to determine the compa-ratio.
A. .1 C. 1.1
B. 1 D. 11
3. The following is a list of some major U.S. cities and their corresponding Consumer
Price Index numbers:
Philadelphia: 100
Atlanta: 155
Los Angeles: 127
Seattle: 109
If you were aligning your cost of living raises to the Consumer Price Index, then in
which city would you give the highest pay raises?
A. Philadelphia C. Los Angeles
B. Atlanta D. Seattle
4. The following information was taken from the Wyatt Cabinet Company payroll
database:
Annual labor cost: $10 million
Turnover rate: 20%
Planned average payroll increase: 5%
Using this information, calculate the turnover effect.
A. $1,000 C. $100,000
B. $10,000 D. $1 million
5. The following information was taken from the Wyatt Cabinet Company payroll
database:
Average employee salary, beginning of year: $40,000
Average employee salary, end of year: $48,000
Using this information, calculate the percentage level of increase in payroll for the year.
A. 1% C. 10%
B. 5% D. 20%
6. Camille is classified as an expatriate. Which of the following is the most likely the
reason that she was selected for an overseas assignment?
A. Her specific expertise C. Management development
B. To protect the company’s interests D. Sales
7. Paula is an employee who is moving from the United States to Argentina for her job.
Her employer is using the balance sheet approach to determine her new base salary in
Argentina. If Paula currently earns $50,000 per year and the cost of living in Argentina
is 5% higher than in the United States, then how much should her employer pay her?
(Assume that taxes are the same and there will be no relocation bonus.)
A. $47,500 C. $52,500
B. $50,000 D. $55,000
8. Ronald is a CEO of a major corporation that produced some fraudulent documents to
increase the value of the company’s stock. Once the stock price was high, Ronald sold
all of his shares. Once the fraudulent documents were uncovered, the stock price
quickly declined. Which law is Ronald in violation of?
A. Davis-Bacon Act
B. Sarbanes-Oxley Act
C. Financial Accounting Standards Board 123 R
D. Securities and Exchange Commission Rule on Executive Compensation and
Related-Party Disclosure
9. Vortex Construction just received a contract to build a new federal building in Memphis,
Tennessee. It must pay its employees 20% more than their normal wages to meet the
going pay rate in that area. Which law is Vortex in compliance with by giving its
employees an increase in pay for this job?
A. Davis-Bacon Act C. Fair Labor Standards Act
B. Walsh-Health Public Contracts Act D. Equal Pay Act
10. In which year was the inflation-adjusted value of the minimum wage the lowest?
A. 1952 C. 1962
B. 1957 D. 1967
11. Which of the following would constitute a violation of the Equal Pay Act?
A. Bob and Jill work at different companies but have the same job. Bob earns more
money because his supervisor believes that men are more productive than women.
B. Bob and Jill work at the same company but have different jobs. Bob earns more
money because his supervisor believes that men are more productive than women.
C. Bob and Jill work at the same company and have the same job. Bob earns more
money because his supervisor believes that men are more productive than women.
D. Bob and Jill work at different companies and have different jobs. Bob earns more
money because his supervisor believes that men are more productive than women.
12. Which of the following would be an example of disparate impact?
A. Requiring employees to take a high-level foreign language test to earn a promotion
even though the new job doesn’t require knowing or understanding any foreign
language
B. Hiring an employee because he is the same religion as you are
C. Lowering a female employee’s pay because she is pregnant
D. Terminating an employee because she refuses to say prayers with the rest of the employees
13. Which of the following is an example of a violation of Title VII of the Civil Rights Act
of 1964?
A. Failing to hire a person because he has a disability
B. Failing to hire a person because you think she’s too old for the job
C. Failing to hire a person because you don’t like his political views
D. Failing to hire a person because you don’t like the color of her skin
14. Which of the following employees would be covered under the Fair Labor Standards Act?
A. A book author who spends all of her time writing original romance novels
B. A commercial airline pilot who routinely spends four days at a time flying around
the country
C. A retail employee who is paid an hourly wage to operate a cash register
D. A regional manager who has eight manufacturing plant managers who work for her
15. The following information was taken from the Wyatt Cabinet Company payroll
database:
Number of employees: 100
Average annual cash compensation: $20,000
Average annual benefit cost: $10,000
Using the simple labor cost model, determine the annual labor cost for Wyatt Cabinet
Company.
A. $200,000 C. $2 million
B. $300,000 D. $3 million
16. Don is an employee at Colin Software, which is based in the United States. Don is
classified as a third-country national. Which of the following would best describe Don?
A. He is a U.S. citizen, but he’s working in the company’s branch in Mexico.
B. He is a U.S. citizen who is working in the United States.
C. He is a Mexican citizen who is working in the company’s branch in Mexico.
D. He is a Mexican citizen who is working in the company’s branch in Japan.
17. Best Computers, Inc., is a multinational corporation with operations in over 30 different
countries. They’ve been classified as a localized company. Which type of pay scale
would you probably see at Best Computers, Inc.?
A. A pay scale that’s the same for every employee in the company regardless of which
country that are working
B. A pay scale that uses compensation information from the different countries to
determine a companywide pay scale
C. A pay scale that’s different for every operation in every country depending on what
the local pay scales look like
D. A pay scale that uses a two-tiered system based on employee seniority
18. Karen is an employee at a boat manufacturing plant in Germany. Which of the following
characteristics would most likely be true of Karen’s employer?
A. Karen earns the same amount as many of the other boat manufacturing employees
who work for different companies.
B. Karen receives up to 30% of her annual salary in the form of a performance bonus.
C. Karen has been guaranteed life employment within her firm and she intends on
staying there for her entire career.
D. Karen and all of her coworkers are members of the same union.
19. Tim is a member of a union that represents every employee in his company. Tim’s
neighbor, Franklin, works for a different company and is a member of a different union.
In which country is Tim most likely employed?
A. United States C. Germany
B. Japan D. Canada
20. According to the Big Mac approach, which country has the lowest cost of living?
A. United States C. Chile
B. Britain D. Japan
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7/29/2013
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