Question 1

Defined contribution plans insulate employees from investment risks, which are borne by the company.

Accepted Answer

A) True 
 B)False

Question 2

Mike is 60 years old and knows there are differences in payments if he retires at 62, 65, and 70. Design a chart that will show the amount of pay he can expect at each age.

Accepted Answer

The Social Security Act of 1935 was the ...

Question 3

Falcon Wings Inc. has instituted an incentive program that includes smoking cessation and exercise. The goal of this wellness program is to

Accepted Answer

A)   provide treatment for ailing employees.
B)   manage health care costs by helping employees in need.
C)   provide rehabilitation services.
D)   manage insurance-related queries from employees.
E)   change health-related behaviors both on and off work time.F) A) and D)
G) C) and E)

Question 4

Which of the following is a characteristic of a health maintenance organization (HMO) ?

Accepted Answer

A)   Exclusion of outpatient care
B)   Provision of benefits on a reimbursement basis
C)   Payment of physicians on a flat salary basis
D)   Payment of physicians on a fee-for-service basis
E)   Payment of physicians depending on the number of patients seenF) None of the above
G) C) and E)

Question 5

Financial Accounting Statement 106 requires that any benefits provided after retirement be paid on a(n)  ________ basis.

Accepted Answer

A)   pay-as-you-go
B)   accrual
C)   annual
D)   subtraction
E)   monthlyF) All of the above
G) C) and D)

Question 6

With the passage of the Americans with Disabilities Act, employers came under even greater pressure to deal effectively and fairly with workplace injuries.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true about the Pension Benefit Guaranty Corporation (PBGC) ?

Accepted Answer

A)   It was created by the Consolidated Omnibus Budget Reconciliation Act (COBR
A)   of 1985.
B)   It guarantees a complete pension benefit replacement.
C)   It does not guarantee health care benefits.
D)   It is not funded by an annual contribution per plan participant.
E)   It allows payouts to be adjusted for cost-of-living changes.F) D) and E)
G) C) and E)

Question 8

Survey information on competitors' benefit packages and information on benefit costs are available from

Accepted Answer

A)   public consultants.
B)   the Pension Benefit Guaranty Corporation (PBG
C)  .
C)   the Bureau of Labor Statistics (BLS) .
D)   the Legal Information Institute (LII) .
E)   unemployment offices.F) None of the above
G) A) and B)

Question 9

Which of the following is a major category of workers' compensation?

Accepted Answer

A)   Sustainability income
B)   Death-of-spouse benefits
C)   Rehabilitative services
D)   Housing care
E)   Pension servicesF) A) and B)
G) All of the above

Question 10

Which of the following is true of the Fair Labor Standards Act (FLSA) ?

Accepted Answer

A)   It requires exempt employees to be paid time and a half for hours in excess of 40 per week.
B)   It has led to Americans working fewer hours now as compared to earlier times due to a rise in benefits.
C)   It is more likely to cause employers to classify workers as independent contractors than employees.
D)   It has led to part-time employees being more likely to receive benefits than full-time employees.
E)   It increases the employer's obligation to provide legally required employee benefits.F) A) and C)
G) A) and D)

Question 11

Increasing retiree health care costs (and the change in accounting standards) have led some companies to require white-collar employees and retirees to pay insurance premiums for the first time in history.

Accepted Answer

A) True 
 B)False

Question 12

Discuss how retirement plans can combine the advantages of defined benefit plans and defined contribution plans.

Accepted Answer

One way to combine the advantages of def...

Question 13

The unemployment insurance program is financed largely through federal and state taxes on

Accepted Answer

A)   employees.
B)   employers.
C)   retired personnel.
D)   the general public.
E)   employment agencies.F) A) and E)
G) C) and D)

Question 14

Which of the following is true about private group insurance?

Accepted Answer

A)   Concern for employee security explains the prevalence of employer-sponsored insurance plans.
B)   Disability insurance programs are mandatory in all high-risk occupations.
C)   Medical insurance programs are mandatory in all organizations.
D)   Individuals have more bargaining power when negotiating prices.
E)   Group insurance rates are typically higher than individual rates because of economies of scale.F) B) and D)
G) C) and D)

Question 15

Why are U.S. companies beginning to offer child care as a benefit to employees? How does child care affect the business?

Accepted Answer

U.S. companies increasingly provide some...

Question 16

Where employee contributions completely fund a disability insurance plan, there is no federal tax.

Accepted Answer

A) True 
 B)False

Question 17

North Winds needs to downsize. They have done an employee scan and have realized that there are a number of employees who could retire or retire early to meet their budget goals. They have put together a packet of incentives, but according to the Age Discrimination in Employment Act (ADEA) ,

Accepted Answer

A)   it is the employees', not the employers', responsibility to gather all information about available options.
B)   employers should ensure that only employees over the age of 60 receive the program's benefits.
C)   employees meet a stringent deadline in making their decision about early retirement.
D)   employers can cease the accrual of retirement benefits at about 65 years to induce older employees to retire.
E)   employees should not be coerced to accept an incentive and retire.F) A) and E)
G) B) and C)

Question 18

An organization introduces active employee wellness programs. Which of the following is likely to happen in the organization as a result?

Accepted Answer

A)   More focus on physical exercise than on awareness issues
B)   More health education programs designed to inform employees on health-related topics
C)   Fewer counselors who handle one-on-one outreach programs
D)   Increased focus on awareness and opportunity as well as support and reinforcement
E)   Introduction of a center for physical fitness for employees to use anytimeF) A) and E)
G) A) and C)

Question 19

After an illness, Andy is now unable to work and will receive disability pay. He assumes that this pay will be similar to unemployment insurance and will be taxed. Is he correct?

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true about employee benefits?

Accepted Answer

A)   Government involvement in benefits decisions is minimal.
B)   The impact of legal regulations on benefits is greater than that on direct compensation.
C)   Understanding the value of a dollar in a benefits package is more complicated than understanding it in a salary.
D)   The tax treatment of benefits programs is often less favorable for employees than is the tax treatment of wages and salaries.
E)   Employees are always aware of the benefits available, as well as how to use them.F) A) and D)
G) A) and E)

Exam 13: Employee Benefits

Defined contribution plans insulate employees from investment risks, which are borne by the company.

Correct AnswerverifiedShow Answer

Which of the following is true about employee benefits?

Correct AnswerverifiedShow Answer

Falcon Wings Inc. has instituted an incentive program that includes smoking cessation and exercise. The goal of this wellness program is to

Correct AnswerverifiedShow Answer

Financial Accounting Statement 106 requires that any benefits provided after retirement be paid on a(n) ________ basis.

Correct AnswerverifiedShow Answer

North Winds needs to downsize. They have done an employee scan and have realized that there are a number of employees who could retire or retire early to meet their budget goals. They have put together a packet of incentives, but according to the Age Discrimination in Employment Act (ADEA) ,

Correct AnswerverifiedShow Answer

With the passage of the Americans with Disabilities Act, employers came under even greater pressure to deal effectively and fairly with workplace injuries.

Correct AnswerverifiedShow Answer

The unemployment insurance program is financed largely through federal and state taxes on

Correct AnswerverifiedShow Answer

Discuss how retirement plans can combine the advantages of defined benefit plans and defined contribution plans.

Correct AnswerverifiedOne way to combine the advantages of def...View AnswerShow Answer

Which of the following statements is true about the Pension Benefit Guaranty Corporation (PBGC) ?

Correct AnswerverifiedShow Answer

Increasing retiree health care costs (and the change in accounting standards) have led some companies to require white-collar employees and retirees to pay insurance premiums for the first time in history.

Correct AnswerverifiedShow Answer

An organization introduces active employee wellness programs. Which of the following is likely to happen in the organization as a result?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of a health maintenance organization (HMO) ?

Correct AnswerverifiedShow Answer

Which of the following is a major category of workers' compensation?

Correct AnswerverifiedShow Answer

Survey information on competitors' benefit packages and information on benefit costs are available from

Correct AnswerverifiedShow Answer

Which of the following is true about private group insurance?

Correct AnswerverifiedShow Answer

Where employee contributions completely fund a disability insurance plan, there is no federal tax.

Correct AnswerverifiedShow Answer

After an illness, Andy is now unable to work and will receive disability pay. He assumes that this pay will be similar to unemployment insurance and will be taxed. Is he correct?

Correct AnswerverifiedShow Answer

Mike is 60 years old and knows there are differences in payments if he retires at 62, 65, and 70. Design a chart that will show the amount of pay he can expect at each age.

Correct AnswerverifiedThe Social Security Act of 1935 was the ...View AnswerShow Answer

Why are U.S. companies beginning to offer child care as a benefit to employees? How does child care affect the business?

Correct AnswerverifiedU.S. companies increasingly provide some...View AnswerShow Answer

Which of the following is true of the Fair Labor Standards Act (FLSA) ?

Correct AnswerverifiedShow Answer

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One way to combine the advantages of def...
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The Social Security Act of 1935 was the ...
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Correct Answer
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U.S. companies increasingly provide some...
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Correct Answer
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