SOLVED

21) Profit sharing plans and employee stock option plans are incentives on what level? A) individual B) group C) companywide D) executive 22) These profit sharing plans award cash to employees on a quarterly or annual basis as part of their regular compensation. A) recent profit sharing plans B) current profit sharing plans C) deferred profit sharing plans D) anticipated profit sharing plans 23) XYZ Company pays a portion of company profits to its employees. The management offers this incentive plan as one kind of retirement program. What kind of companywide incentive plan does XYZ Co. offer? A) employee stock ownership plan B) deferred profit sharing plan C) current profit sharing plan D) employee stock option plan 24) This formula for determining the amount available for profit sharing uses a specific percentage of annual profits contingent upon the successful attainment of a specified profit goal. A) fluctuating first-dollar-of-profits B) differed first-dollar-of-profits C) graduated first-dollar-of-profits D) fixed first-dollar-of-profits 25) This formula for calculating profit sharing awards gives the employees a higher percentage of the profits as the profits increase. A) fluctuating first-dollar-of-profits B) differed first-dollar-of-profits C) graduated first-dollar-of-profits D) fixed first-dollar-of-profits 26) With which profit sharing formula does the profit sharing pool become funded only after profits exceed a predetermined level but fall below some established maximum level? A) fixed first-dollar-of-profits B) profitability threshold C) graduated first-dollar-of-profit D) equal payments 27) Which of the following is true of most general stock compensation plans? A) The company stock shares represent equity segments of equal value. B) Employees own the stock upon purchase. C) Company stock represents partial equity in the company. D) Stock options refer to what an employee can do with the stock once they purchase it. 28) Which of the following performance measures corresponds to individual/ group/ companywide incentive plans respectively? A) customer satisfaction/quantity of work/market share B) quantity of work/market share/customer satisfaction C) quality of work output/customer satisfaction/market share D) customer satisfaction/market share/quality of work 29) Which of the following is true about the level of risk involved with incentive pay? A) The level of risk decreases as incentive pay represents a greater proportion of total core compensation. B) The level of risk is lower for higher-level employees than those who are lower in the job structure. C) The level of risk depends on the extent to which employees control the attainment of a desired goal. D) The level of risk is dependent on subjective performance appraisals. 30) The general rule of thumb is that short-term company goals last less than how long? A) 1 month B) 6 months C) 1 year D) 5 years