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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Who enforces Title VII of the Civil Rights Act of 1964?

A) The Equal Employment Opportunity Commission
B) The Wage and Hour Division of the Department of Labor
C) The National Civil Rights Commission
D) The Office of Federal Contract Compliance

2. What do working capital metrics evaluate?

A) A company's mean capital expenditure per employee
B) The change in working capital over a specific period of time, typically one year
C) The amount of cash needed to meet the company's short-term obligations
D) A company's efficiency in converting short-term capital into cash

3. Which of the following statements best describes defined contribution (DC) plans?

A) They generally provide better benefits to employees with longer service.
B) The employee assumes the risk for the investments.
C) They require complex actuarial calculations and assumptions.
D) The benefit is based on a formula that considers pay and service.

4. On what basis does the Equal Pay Act of 1963 prohibit an employer from discriminating in employee compensation programs?

A) Religion
B) Sex
C) Race
D) Age

5. What type of equity incentive gives employees the right to purchase company shares at a specified price?

A) Stock/share grants
B) Restricted stock/shares
C) Performance units
D) Stock/share options

Solutions: