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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What do working capital metrics evaluate?

A) The change in working capital over a specific period of time, typically one year
B) A company's mean capital expenditure per employee
C) A company's efficiency in converting short-term capital into cash
D) The amount of cash needed to meet the company's short-term obligations

2. What do profits, equity and debt all have in common?

A) They all incur the same costs to the business.
B) They are all reported on the balance sheet.
C) Nothing. Each of these is a different financial metric.
D) They are all sources of capital.

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

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

4. What best describes the primary purpose of budgeting?

A) Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
B) Limiting spending to a fixed percentage of organizational revenue
C) Making choices about spending based on expectations of performance
D) Increasing profitability of the business annually to maximize shareholder/owner value

5. Which act does the Office of Federal Contract Compliance Programs (OFCCP) enforce?

A) Age Discrimination in Employment Act
B) Civil Rights Act of 1991
C) Americans with Disabilities Act
D) Vocational Rehabilitation Act

Solutions: