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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

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

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

2. What is one reason that it is important to perform a periodic audit of processes and results?

A) It builds in a process of continuous improvement
B) It is required by the Department of Labor
C) It is required in determining increase budgets
D) It determines what information and data sources will be used in the audit

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

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

4. What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

A) It becomes increasingly higher as revenues increase.
B) It decreases because variable costs are increasing.
C) It remains the same.
D) It increases at the same rate as variable costs.

5. Which of the following would most likely be considered a "repeated" violation of the FLSA?

A) An employer that had a prior finding by the Labor Department, court or another tribunal with the authority to make such a finding
B) An employer who should have inquired further into whether its conduct was in compliance with the act and failed to do so.
C) When the Labor Department has advised an employer that its actions were unlawful
D) An employer knowing its conduct was prohibited under the act or showing reckless disregard for the requirements of the act

Solutions: