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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following are the two primary elements of benefits?

A) Pay for time not worked and income protection programs
B) Mental health coverage and health care coverage
C) Defined contribution and defined benefits plans
D) Unemployment and disability

2. When trying to achieve compromise and collaboration to achieve your goals, on which stakeholder(s) should you focus most of your efforts?

A) Influencers and decision-makers who have the respect of employees and are both proponents and opponents of your objectives
B) The most senior leader with the highest level of authority
C) Individuals with power in the organization who have the authority to overrule the concerns of opponents
D) No one person. Identify your stakeholders and work to achieve consensus among the majority.

3. What best describes a use of strategic analysis?

A) Understanding your business and its competitive strengths and weaknesses
B) Pricing your products appropriately
C) Evaluating prior year performance for the narrative portion of annual financial reports
D) Forecasting profit, growth and investment performance to develop realistic budgets

4. Regarding fixed and variable costs, what are Finance's primary concerns?

A) Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.
B) Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.
C) Fixed costs and variable costs are equally important and both should be kept to a minimum.
D) Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

5. Who are you most likely to hear from if there are questions about an employee's compensation?

A) The employee's manager
B) The employee's department head
C) A concerned co-worker
D) The employee

Solutions: