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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What best describes a use of strategic analysis?

A) Understanding your business and its competitive strengths and weaknesses
B) Forecasting profit, growth and investment performance to develop realistic budgets
C) Pricing your products appropriately
D) Evaluating prior year performance for the narrative portion of annual financial reports

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

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

3. To qualify for the executive exemption from the minimum wage and overtime provisions of the FLSA, among other things what must an employee do?

A) Possess knowledge of an advanced type in business administration
B) Customarily and regularly direct the work of at least two full-time employees
C) Devote less than 15% of his/her time to nonexempt work
D) Perform work that is intellectual and varied

4. What is the minimum age for an individual to qualify for protection under the Age Discrimination in Employment Act?

A) 50
B) 45
C) 55
D) 40

5. What is the top line or starting point of an organization's income?

A) Revenue
B) Operating profit
C) Net income
D) Gross profit

Solutions: