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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following is a type of variable pay?

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

2. Who enforces Title VII of the Civil Rights Act of 1964?

A) The Equal Employment Opportunity Commission
B) The National Civil Rights Commission
C) The Office of Federal Contract Compliance
D) The Wage and Hour Division of the Department of Labor

3. As a general rule, what are individual contributors most likely to ask about their compensation?

A) How the company makes pay decisions that affect them
B) How the company sets compensation budgets
C) What the take-home pay will be
D) How their pay compares to co-workers

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

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

5. If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

A) Compensation costs and revenue increase at approximately the same rate.
B) Compensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.
C) Compensation costs eventually stabilize and become a consistent percent of revenue.
D) Compensation costs eventually decrease as a percent of revenue, increasing profit growth.

Solutions: