Question 1

Explain perquisites.

Accepted Answer

Perquisites (Perks) are special benefits...

Question 2

Compensation is given in the form of incentivesbecause it isan effectiveway tomotivate employees,improve corporate performance, and increase stock values.

Accepted Answer

A) True 
 B)False

Question 3

Describe the two primary ways of distributing work unit/team incentives.

Accepted Answer

The two primary ways for distributing th...

Question 4

A restricted stock option indicates that company stock shares will be paid as a grant of shares to individuals.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true of commissions and tips?

Accepted Answer

A)   Tips are paid by the employer; commissions are paid by the customer.
B)   Both tips and commissions are paid by the customer.
C)   Both tips and commissions are paid by the employer.
D)   Tips are paid by the customer; commissions are paid by the employer.

Question 6

Perquisites (Perks) are special benefits, usually noncash items, for executives.

Accepted Answer

A) True 
 B)False

Question 7

Explain profit sharing.

Accepted Answer

As the name implies, profit sharing dist...

Question 8

Variable pay is _____.

Accepted Answer

A)   compensation that is tied to the employee's performance
B)   compensation that is tied to the employee's seniority
C)   compensation that is tied to the employee's ethnicity
D)   compensation that is tied to the employee's qualification

Question 9

Group incentives is least likely to work if _____.

Accepted Answer

A)   most of the members are free riders
B)   cooperation is necessary to do the job
C)   the reward is distributed equally among the members
D)   the reward involved is in the form of cash

Question 10

List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

Accepted Answer

The philosophical foundation of variable...

Question 11

Which of the following is a metric of sales programs in variable pay plans?

Accepted Answer

A)   Return on investment
B)   Turnover costs
C)   Accident rates
D)   Increase in market share

Question 12

Describe the different types of sales compensation plans.

Accepted Answer

Sales compensation plans can be of three...

Question 13

Which of the following is typically classified as an organizational incentive?

Accepted Answer

A)   Commissions
B)   Group team results
C)   Executive stock options
D)   Cost reductions

Question 14

Recognition awards ensure that the award winners are determined objectively.

Accepted Answer

A) True 
 B)False

Question 15

Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.

Accepted Answer

A) True 
 B)False

Question 16

What are employee stock ownership plans?

Accepted Answer

Employee stock ownership plans...

Question 17

Explain bonuses.

Accepted Answer

Individual employees may receive additio...

Question 18

Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Accepted Answer

A)   It provided organizational incentives; now it provides individual incentives.
B)   It provided organizational incentives; now it provides group incentives.
C)   It provided organizational incentives; now also it provides the same.
D)   It provided individual incentives; now also it provides the same.

Question 19

Why do employers use variable pay?

Accepted Answer

Employers adopt variable pay for many re...

Question 20

Which of the following statements is true of discretionary efforts?

Accepted Answer

A)   It is the difference between the amount of effort a person has exerted and the minimum amount of effort that he or she needs to exert to keep from being fired.
B)   It is the difference between the maximum amount of effort a person can exert and the minimum amount of effort that he or she needs to exert to keep from being fired.
C)   It is the difference between the maximum amount of effort a person can exert and the amount of effort a person has exerted while on-the-job.
D)   It is the difference between the amount of effort a person has exerted and the maximum amount of effort that a person can exert while on-the-job.

Exam 12: Variable Pay and Executive Compensation

List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

Correct AnswerverifiedThe philosophical foundation of variable...View AnswerShow Answer

Explain bonuses.

Correct AnswerverifiedIndividual employees may receive additio...View AnswerShow Answer

Explain perquisites.

Correct AnswerverifiedPerquisites (Perks) are special benefits...View AnswerShow Answer

What are employee stock ownership plans?

Correct AnswerverifiedEmployee stock ownership plans...View AnswerShow Answer

Which of the following statements is true of discretionary efforts?

Correct AnswerverifiedShow Answer

Perquisites (Perks) are special benefits, usually noncash items, for executives.

Correct AnswerverifiedShow Answer

Which of the following statements is true of commissions and tips?

Correct AnswerverifiedShow Answer

Describe the different types of sales compensation plans.

Correct AnswerverifiedSales compensation plans can be of three...View AnswerShow Answer

Compensation is given in the form of incentivesbecause it isan effectiveway tomotivate employees,improve corporate performance, and increase stock values.

Correct AnswerverifiedShow Answer

Why do employers use variable pay?

Correct AnswerverifiedEmployers adopt variable pay for many re...View AnswerShow Answer

Variable pay is _____.

Correct AnswerverifiedShow Answer

Group incentives is least likely to work if _____.

Correct AnswerverifiedShow Answer

Under a straight piece-rate system, wages are determined by dividing the number of units produced by the piece rate for one unit.

Correct AnswerverifiedShow Answer

Describe the two primary ways of distributing work unit/team incentives.

Correct AnswerverifiedThe two primary ways for distributing th...View AnswerShow Answer

Which of the following is a metric of sales programs in variable pay plans?

Correct AnswerverifiedShow Answer

Which of the following is typically classified as an organizational incentive?

Correct AnswerverifiedShow Answer

Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Correct AnswerverifiedShow Answer

Recognition awards ensure that the award winners are determined objectively.

Correct AnswerverifiedShow Answer

Explain profit sharing.

Correct AnswerverifiedAs the name implies, profit sharing dist...View AnswerShow Answer

A restricted stock option indicates that company stock shares will be paid as a grant of shares to individuals.

Correct AnswerverifiedShow Answer

Correct Answer
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The philosophical foundation of variable...
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Correct Answer
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Individual employees may receive additio...
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Correct Answer
verified
Perquisites (Perks) are special benefits...
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Correct Answer
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Employee stock ownership plans...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Sales compensation plans can be of three...
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Correct Answer
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Correct Answer
verified
Employers adopt variable pay for many re...
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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The two primary ways for distributing th...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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As the name implies, profit sharing dist...
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Correct Answer
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