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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which employees are covered by the National Labor Relations Act?

A) Airline and railroad employees
B) City, state and federal government employees
C) Employee who work for companies that sell goods in various states

2. Which of the following best describes severance allowances?

A) A portion of one's salary paid during reserve duty and military leave
B) A practice of paying a lump sum to employees during a company shutdown
C) A continuation of a portion of an employee's salary to a beneficiary after the death of an employee
D) A continuation of an employee's salary after termination

3. Regarding fixed and variable costs, what tends to happen as revenue increases?

A) Variable costs increase and consume a higher percent of revenue
B) Variable costs decrease
C) Fixed costs remain the same and consume a lower percent of revenue
D) Fixed costs decrease

4. What type of pay increase is given when an organization finds that its compensation program is behind competitive market rates?

A) Automatic
B) General
C) Merit
D) Cost of living

5. Which of the following is the best example of applying business acumen to data analysis?

A) Providing quarterly incentive estimates for accruals
B) Reviewing historical trends to complete annual budgets
C) Identifying trends and key messages emerging over time
D) Compiling data needed to calculate salary budgets and merit increases

Solutions: