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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What type of equity incentive gives employees the right to purchase company shares at a specified price?

A) Performance units
B) Restricted stock/shares
C) Stock/share grants
D) Stock/share options

2. Which of the following statements regarding the Worker Economic Opportunity Act is most accurate?

A) Stock options may be granted at a 20% discount
B) Employees are not required to participate
C) Employees must hold options for at least 3 months.
D) Employers must include stock profits in overtime calculations.

3. A medical benefits plan provision ensuring that the correct plan is paying expenses when the member is covered under more than one plan is known as what?

A) Coinsurance
B) Coordination of benefits
C) Deductible
D) Out-of-pocket expenses

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

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

5. Which of the following statements best describes defined benefit (DB) plans?

A) There is no promise of a specific benefit at retirement.
B) They are often integrated with government-sponsored programs.
C) Employees are at risk for financial resources.
D) Individual accounts must be maintained for each participant.

Solutions: