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Which benefits provided by the employer is required by law in the United States?


A) paid vacation
B) personal leave
C) flextime
D) Social Security contributions
E) retirement savings plan

F) B) and D)
G) C) and D)

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The use of wellness programs and consumer-directed health plans in an organization reflects its objective of controlling the cost of health care benefits.

A) True
B) False

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Employees who are parents always need child care and family leave.

A) True
B) False

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Phono Inc. has a benefits package that includes paid vacations and sick leave. The human resource manager proposes shifting this time into a bank of paid time off. What would be an advantage of this change?


A) Vacation and sick leave do not make economic sense.
B) Most companies offer this arrangement.
C) The company won't have to set a schedule for holidays.
D) The company won't have to pay for the time the employees take off.
E) Employees have more flexibility and privacy for their personal matters.

F) A) and E)
G) A) and D)

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Which act requires companies with more 50 full-time employees to provide health insurance or face a penalty?


A) Social Security Act.
B) Employee Retirement Income Security Act.
C) Family and Medical Leave Act.
D) Patient Protection and Affordable Care Act.
E) Consolidated Omnibus Budget Reconciliation Act.

F) B) and E)
G) B) and C)

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Under the Older Workers Benefit Protection Act of 1990, which guideline must employers follow when asking employees to sign early-retirement waivers?


A) inform employees that they may consult with a lawyer before signing
B) allow employees no more than 48 hours before signing the retirement agreement
C) make Age Discrimination in Employment Act (ADEA) waivers compulsory
D) provide lesser benefits than would otherwise be available upon retirement
E) provide employees with an annual bonus and health insurance after the retirement

F) A) and E)
G) C) and D)

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Chandler is the owner of a restaurant called KC Kitchen. He decides to increase employee motivation by introducing benefit packages. However, Alivia, the manager, suggests that employees will be more motivated if Chandler increases their actual wages. Which statement, if true, strengthens Alivia's argument?


A) Chandler's competitor, Henry, gives many benefits to his employees.
B) The state has introduced mandatory requirements for employee benefits.
C) Benefit packages are more difficult to understand by employees than pay structures.
D) Most of the employees at KC Kitchen belong to the age group that looks forward to pensions.
E) Employees do not prefer cash compensation due to higher tax rates.

F) A) and B)
G) A) and C)

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Jesse has a health care plan that provides him with coverage that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Jesse using?


A) managed care
B) health maintenance organization
C) preferred provider organization
D) flexible health plan
E) consumer-driven health plan

F) C) and D)
G) D) and E)

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Employees are most likely to benefit from a flexible spending account if they have predictable health care expenses, such as insurance premiums.

A) True
B) False

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Tina, an HR manager, and her staff devote long hours to planning and running a "benefits fair," where employees can view displays and ask questions about the various parts of the company's benefits package. The following week, the marketing manager asks if the effort was worthwhile. Tina says it was. What is the most likely reason for Tina's opinion?


A) It lowered the cost of communicating with employees, because now the company doesn't need to use printed media.
B) It lowered the cost of providing benefits, because employees know what to sign up for.
C) It increased employees' commitment to saving for retirement, so they won't need Social Security.
D) It increased employees' happiness and job commitment, so they are more fun to be around.
E) It increased employees' commitment and satisfaction, so they contribute more to the company.

F) B) and E)
G) C) and D)

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What is the importance of benefits as a part of employee compensation?

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Benefits contribute to attracting, retai...

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How do HMOs and PPOs differ from each other and from traditional health care providers?

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PPOs are health care plans that contract...

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Meghan, who recently moved to a new city, evaluates several insurance options from her new employer. Owing to her recent medical issues, she wants to choose her health care providers, even if seeing them costs more than seeing the providers in a specific insurance network. Which health care plan is Meghan most likely to find suitable for her needs?


A) a managed care plan
B) a health maintenance organization
C) a preferred provider organization
D) an employee wellness program
E) a flexible spending account

F) None of the above
G) All of the above

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As Monty Corp., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Juliet, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which statement best supports Juliet's argument?


A) Employees do not pay income taxes on most benefits they receive.
B) Benefits are harder for employees to understand than pay structures.
C) Employees could get a better deal if they bought their own insurance policies.
D) Higher cash compensation gives employees more purchasing power.
E) Different employees look for different types of benefits.

F) A) and D)
G) C) and E)

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What is an advantage of a qualified plan in retirement benefits?


A) immediate tax deductions for the funds employees contribute to the plan
B) taxable earnings on the money in the retirement fund
C) tax-free withdrawals for highly compensated employees
D) exemption of contribution from employees
E) a retirement plan that provides benefits exclusively to its owners and top managers

F) All of the above
G) C) and D)

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Organizations must communicate benefits information to employees so that they will


A) be motivated to work harder.
B) choose the least-expensive benefits package.
C) be legally liable in an employee lawsuit.
D) be informed of future career opportunities within the organization.
E) appreciate the value of their benefits.

F) A) and E)
G) A) and C)

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What are the objectives of the unemployment insurance program established by the Social Security Act of 1935? How is this program funded?

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The unemployment insurance program was e...

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Discuss the Family and Medical Leave Act (FMLA) of 1993, including its eligibility requirements, scope of coverage, and effectiveness.

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The Family and Medical Leave Act (FMLA) ...

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What is a function of elder care benefits offered by organizations?


A) providing direct financial assistance
B) providing tax exemptions on medical bills of the dependent elders
C) setting up elderly care facilities close to the workplace
D) providing information, referrals, and support
E) providing vouchers and discounts to help employees access the existing elderly care facilities

F) A) and E)
G) B) and C)

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Under the workers' compensation laws, employees are eligible to receive their regular paychecks in the event of a disability.

A) True
B) False

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