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Dessler11
Chapter 11: Establishing Strategic Pay Plans
Multiple Choice

1. _____ refers to all forms of pay or rewards going to employees and arising from their employment.
a. Reimbursement
b. Employee compensation
c. Salary
d. Benefits
e. Remuneration
(b; easy; p. 390)

2. Direct financial payments include all of the following except _____.
a. wages
b. insurance
c. salaries
d. incentives
e. commissions
(b; easy; p. 390)

3. Which of the following is categorized as an indirect payment portion of employee compensation?
a. wages
b. salaries
c. employer-paid insurance
d. commissions
e. bonuses
(c; moderate; p. 390)

4. John is a sales representative in a jewelry store. He typically works 40 hours per week and his pay is completely based on his sales. He earns a commission on every sale he makes. John’s pay is based on _____.
a. time
b. pay
c. incentives
d. bonuses
e. seniority
(b; moderate; p. 390)

5. Which of the following factors affects the design of any pay plan?
a. legal
b. union
c. company policy
d. equity
e. all of the above
(e; easy; p. 390)

6. Which law allows the secretary of labor to set wage rates for laborers and mechanics employed by contractors working for the federal government?
a. Davis-Bacon Act
b. Walsh-Healey Public Contract
c. Fair Wages Act
d. Civil Rights Act
e. Fair Labor Standards Act
(a; difficult; p. 390)

7. The _____ sets basic labor standards for employees working on any government contract that amounts to more than $10,000.
a. Davis-Bacon Act
b. Walsh-Healey Public Contract
c. Fair Wages Act
d. Civil Rights Act
e. Fair Labor Standards Act
(b; difficult; p. 390)

8. Which compensation-related law contains minimum wage, maximum hours, overtime pay, equal pay, and child labor provisions?
a. Davis-Bacon Act
b. Walsh-Healey Public Contract
c. Fair Wages Act
d. Civil Rights Act
e. Fair Labor Standards Act
(e; difficult; p. 391)

9. Which of the following is addressed by the Fair Labor Standards Act?
a. minimum wage
b. maximum hours
c. overtime pay

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