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1. Which of the following employees would be covered under the Fair Labor Standards Act?
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A. A commercial airline pilot who routinely spends four days at a time flying around the country
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B. A retail employee who is paid an hourly wage to operate a cash register
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C. A regional manager who has eight manufacturing plant managers who work for her
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D. A book author who spends all of her time writing original romance novels
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2. The following information was taken from the Wyatt Cabinet Company payroll database:
Number of employees: 100
Average annual cash compensation: $20,000
Average annual benefit cost: $10,000
Using the simple labor cost model, determine the annual labor cost for Wyatt Cabinet Company. 586
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A. $3 million
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B. $2 million
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C. $300,000
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D. $200,000
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3. Paula is an employee who is moving from the United States to Argentina for her job. Her employer is using the balance sheet approach to determine her new base salary in Argentina. If Paula currently earns $50,000 per year and the cost of living in Argentina is 5% higher than in the United States, then how much should her employer pay her? (Assume that taxes are the same and there will be no relocation bonus.) 5 % of 50,000= 2500
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A. $52,500
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B. $47,500
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C. $55,000
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D. $50,000
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4. Ronald is a CEO of a major corporation that produced some fraudulent documents to increase the value of the company’s stock. Once the stock price was high, Ronald sold all of his shares. Once the fraudulent documents were uncovered, the stock price quickly declined. Which law is Ronald in violation of? 550
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A. Financial Accounting Standards Board 123 R
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B. Sarbanes-Oxley Act
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C. Securities and Exchange Commission Rule on Executive Compensation and Related-Party Disclosure
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D. Davis-Bacon Act
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5. The following is a list of shipping clerks and their hourly wages:
Bernard: $15
Samuel: $12
Barbara: $12
Jessica: $15
The salary range midpoint for shipping clerks is $13.50. Use this information to determine the compa-ratio. 599 15/13.50=1.11111111
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6. The Baer Corporation hasn’t been doing well due to the economy. Due to this decrease in performance, the employee stock options have lost their value. The Compensation Manager is trying to explain to the employees why this is occurring, but they have expectations of high returns on their options because the company has never seen hard financial times. Which of the following is this an example of? 607
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A. Herding
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B. Anchoring/framing
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C.X Persistence of belief
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D. Pattern recognition
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7. Which of the following is an example of a violation of Title VII of the Civil Rights Act of 1964? 550
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A. Failing to hire a person because you don’t like the color of her skin
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B. Failing to hire a person because he has a disability
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C. Failing to hire a person because you think she’s too old for the job
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D. Failing to hire a person because you don’t like his political views
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8. The following information was taken from the Wyatt Cabinet Company payroll database:
Annual labor cost: $10 million
Turnover rate: 20%
Planned average payroll increase: 5%
Using this information, calculate the turnover effect. Page 588 .20*.05=0.01*10,000,000=100,000
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A. $1 million
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B. $10,000
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C. $1,000
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D. $100,000
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9. Best Computers, Inc., is a multinational corporation with operations in over 30 different countries. They’ve been classified as a localized company. Which type of pay scale would you probably see at Best Computers, Inc.?
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A. A pay scale that’s the same for every employee in the company regardless of which country that are working
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B. A pay scale that’s different for every operation in every country depending on what the local pay scales look like
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C. A pay scale that uses compensation information from the different countries to determine a companywide pay scale
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D. A pay scale that uses a two-tiered system based on employee seniority
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10. The following is a list of some major U.S. cities and their corresponding Consumer Price Index numbers:
Philadelphia: 100
Atlanta: 155
Los Angeles: 127
Seattle: 109
If you were aligning your cost of living raises to the Consumer Price Index, then in which city would you give the highest pay raises? 592
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A. Atlanta
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B. Los Angeles
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C. Philadelphia
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D. Seattle
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11. Which of the following would constitute a violation of the Equal Pay Act? 559
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A. Bob and Jill work at the same company but have different jobs. Bob earns more money because his supervisor believes that men are more productive than women.
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B. Bob and Jill work at different companies and have different jobs. Bob earns more money because his supervisor believes that men are more productive than women.
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C. Bob and Jill work at the same company and have the same job. Bob earns more money because his supervisor believes that men are more productive than women.
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D. Bob and Jill work at different companies but have the same job. Bob earns more money because his supervisor believes that men are more productive than women.
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12. Camille is classified as an expatriate. Which of the following is the most likely the reason that she was selected for an overseas assignment? 537
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A. Management development maybe this one
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B. Sales
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C. To protect the company’s interests
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D. Her specific expertise
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13. According to the Big Mac approach, which country has the lowest cost of living? 522
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A. United States
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B. Britain
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C. Chile
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D. Japan
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14. Vortex Construction just received a contract to build a new federal building in Memphis, Tennessee. It must pay its employees 20% more than their normal wages to meet the going pay rate in that area. Which law is Vortex in compliance with by giving its employees an increase in pay for this job? 550 either A or B
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A. Davis-Bacon Act
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B. Walsh-Health Public Contracts Act
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C. Fair Labor Standards Act
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D. Equal Pay Act
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15. Which of the following would be an example of disparate impact? 563
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A. Hiring an employee because he is the same religion as you are
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B. Terminating an employee because she refuses to say prayers with the rest of the employees
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C. xRequiring employees to take a high-level foreign language test to earn a promotion even though the new job doesn’t require knowing or understanding any foreign language
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D. Lowering a female employee’s pay because she is pregnant
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16. In which year was the inflation-adjusted value of the minimum wage the lowest? 554
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A. 1962
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B.x 1957
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C. 1967
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D. 1952
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17. Don is an employee at Colin Software, which is based in the United States. Don is classified as a third-country national. Which of the following would best describe Don?
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A. He is a U.S. citizen who is working in the United States.
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B. He is a Mexican citizen who is working in the company’s branch in Japan.
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C. He is a Mexican citizen who is working in the company’s branch in Mexico.
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D. He is a U.S. citizen, but he’s working in the company’s branch in Mexico.
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18. Karen is an employee at a boat manufacturing plant in Germany. Which of the following characteristics would most likely be true of Karen’s employer? 531
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A. Karen has been guaranteed life employment within her firm and she intends on staying there for her entire career.
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B. Karen earns the same amount as many of the other boat manufacturing employees who work for different companies.
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C.x Karen and all of her coworkers are members of the same union.
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D. Karen receives up to 30% of her annual salary in the form of a performance bonus.
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19. Tim is a member of a union that represents every employee in his company. Tim’s neighbor, Franklin, works for a different company and is a member of a different union. In which country is Tim most likely employed? 527
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A. Canada
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B. United States
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C. xGermany
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D. Japan
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20. The following information was taken from the Wyatt Cabinet Company payroll database:
Average employee salary, beginning of year: $40,000
Average employee salary, end of year: $48,000
Using this information, calculate the percentage level of increase in payroll for the year.
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A. 5%
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B. 20%
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C. 10%
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D. 1%
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