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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What is the minimum age for an individual to qualify for protection under the Age Discrimination in Employment Act?

A) 40
B) 50
C) 55
D) 45

2. Which one of the following practices will help to ensure proper documentation for compliance with legislation?

A) Use one survey source instead of several
B) Be consistent in procedures and completeness
C) Allow employees easy and unlimited access to documentation

3. What do profits, equity and debt all have in common?

A) They are all sources of capital.
B) Nothing. Each of these is a different financial metric.
C) They all incur the same costs to the business.
D) They are all reported on the balance sheet.

4. Regarding cost analysis of compensation expense, which job is most likely to incur fixed costs for the company?

A) Account executive
B) IT contractor
C) Production worker
D) HR Director

5. Which of the following is the earnings available to equity owners after paying debt and taxes?

A) Net income
B) EPS
C) EBIT
D) Operating profit

Solutions: