CEBS GBA - Module 1 Exam Questions with 100% Correct Answers
Latest Graded A+
Question:
Fringe Benefits
Answer:
Addition of benefits as an offset to higher labor
Question:
Broad View
Answer:
"Virtually any form of compensation other than direct wages"
Question:
Limited (Narrow) View
Answer:
Benefits that stem from an employment relationship, not underwritten or paid for directly by the
government
Question:
Reasons for growth in Employee Benefit Plans
Answer:
Business, tax legislation, collective bargaining, efficiency of the approach
Question:
Labor Management Relations Act (Taft Hartley Act)
Answer:
Administered by the NLRB, requires good faith bargaining between employers and employees in
the matters of hours, wages, and working conditions.
Question:
Effect of the Industrial Revolution
,Answer:
Employees started moving to employers in Cities, the grouping of employees made it easier to
cover all employees under one contract. Employer benefits are convenient and simple.
Question:
Effect of World War II
Answer:
Wages were limited due to the government, employee benefits were deemed as compensation.
Question:
Group Technique
Answer:
Only certain groups are eligible (a specific company's employees), steady flow of lives (cost
increases as age increases), minimum number of lives.
Question:
Functional Approach
Answer:
Organized system for analyzing audience, participants exposure to risk, focused on employee
needs, reducing company loss, and being thoughtful of cost parameters, originated in 1967 by
George C. Foust.
Question:
Risk
Answer:
Uncertainty when thinking in terms of a 'loss' (Loss referring to the insurance of a decrease in
value). Eg. Illness, death, disability, unemployment, cost of medical bills .
Question:
Peril
Answer:
The cause of personal/property loss, destruction, or damage.
Question:
, Hazard
Answer:
A condition that increases the probability of a peril occurring or that can increase the loss in the
event of a peril.
Question:
Physical Hazard
Answer:
The presence of flammable materials in absence of extinguishers, machines without safety
mechanisms, faulty heating/air conditioner units.
Question:
Moral Hazard
Answer:
Dishonest, unethical, and immoral people - those who steal/damage company property; file
fraudulent medical claims, abuse sick time, falsify pay records or expenses
Question:
Morale Hazard
Answer:
Those that arise through a person acting careless. It can also include the act of not securing items of
value; failing to notify employees of hazards, etc.
Question:
Pure Risk
Answer:
Either risk will happen, or will not happen. These types of risks can be insured. Eg. sickness,
accident, unemployment, disability, theft of property, etc.
Question:
Speculative Risk
Answer:
Either loss, no loss, or gain. Eg. Purchases of stock, new business ventures, gambling. In each, one
could lose, break even, or gain.
Latest Graded A+
Question:
Fringe Benefits
Answer:
Addition of benefits as an offset to higher labor
Question:
Broad View
Answer:
"Virtually any form of compensation other than direct wages"
Question:
Limited (Narrow) View
Answer:
Benefits that stem from an employment relationship, not underwritten or paid for directly by the
government
Question:
Reasons for growth in Employee Benefit Plans
Answer:
Business, tax legislation, collective bargaining, efficiency of the approach
Question:
Labor Management Relations Act (Taft Hartley Act)
Answer:
Administered by the NLRB, requires good faith bargaining between employers and employees in
the matters of hours, wages, and working conditions.
Question:
Effect of the Industrial Revolution
,Answer:
Employees started moving to employers in Cities, the grouping of employees made it easier to
cover all employees under one contract. Employer benefits are convenient and simple.
Question:
Effect of World War II
Answer:
Wages were limited due to the government, employee benefits were deemed as compensation.
Question:
Group Technique
Answer:
Only certain groups are eligible (a specific company's employees), steady flow of lives (cost
increases as age increases), minimum number of lives.
Question:
Functional Approach
Answer:
Organized system for analyzing audience, participants exposure to risk, focused on employee
needs, reducing company loss, and being thoughtful of cost parameters, originated in 1967 by
George C. Foust.
Question:
Risk
Answer:
Uncertainty when thinking in terms of a 'loss' (Loss referring to the insurance of a decrease in
value). Eg. Illness, death, disability, unemployment, cost of medical bills .
Question:
Peril
Answer:
The cause of personal/property loss, destruction, or damage.
Question:
, Hazard
Answer:
A condition that increases the probability of a peril occurring or that can increase the loss in the
event of a peril.
Question:
Physical Hazard
Answer:
The presence of flammable materials in absence of extinguishers, machines without safety
mechanisms, faulty heating/air conditioner units.
Question:
Moral Hazard
Answer:
Dishonest, unethical, and immoral people - those who steal/damage company property; file
fraudulent medical claims, abuse sick time, falsify pay records or expenses
Question:
Morale Hazard
Answer:
Those that arise through a person acting careless. It can also include the act of not securing items of
value; failing to notify employees of hazards, etc.
Question:
Pure Risk
Answer:
Either risk will happen, or will not happen. These types of risks can be insured. Eg. sickness,
accident, unemployment, disability, theft of property, etc.
Question:
Speculative Risk
Answer:
Either loss, no loss, or gain. Eg. Purchases of stock, new business ventures, gambling. In each, one
could lose, break even, or gain.
