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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Upon which criterion are step increases typically based?

A) Individual performance
B) Market adjustment
C) Longevity
D) Skills

2. Which of the following acts is focused on employers with construction contracts with the government?

A) Davis-Bacon Act
B) National Labor Relations Act
C) McNamara-O'Hara Act
D) Sherman Antitrust Act

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

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

4. The XYZ Company opened a new manufacturing facility with a capital investment of 10,000,000. The cost to obtain the capital was 8%. In its first year of operations, the facility's net operating profit after taxes was
10,500,000. What was the economic value added (EVA) using the EVA formula?

A) 500,000
B) 8,000,000
C) 840,000
D) 9,700,000

5. Which type of base pay is typically based on an individual employee's rate of production?

A) Production rate
B) Hourly rate
C) Salary
D) Piece rate

Solutions: