Ch. 13 Human Mngt Review Practice Study Guide.

CH. 13 Human MNGT REVIEW PRACTICE STUDY GUIDE. 1. Employee benefits can be constructively viewed as a(n): a. intangible plan that does not affect the costs borne by a company. b. government-mandated instrument. c. cultural necessity. d. tool for competitive advantage. - CORRECT ANSWER D tool for competitive Advantage In developed countries, _____ are far more likely to provide compulsory health plans for people, regardless of employment status. a. privately owned organizations b. governments c. non-governmental organizations d. unions - CORRECT ANSWER b governments 3. A flexible benefits plan typically: a. allows employees to contribute a percentage of their basic pay to buy benefits in addition to the employer's basic package. b. continuously updates the benefit options provided by an employer according to the demands and requirements of employees. c. provides flexibility in choosing the time of the year when employees would like to make use of the benefits provided to them. d. allows employees to select the benefits they prefer from options established by the employer. - CORRECT ANSWER d. allows employees to select the benefits they prefer from options established by the employer. A situation in which only higher-risk employees choose and use certain benefits under a flexible benefits plan provided by employers is referred to as _____. a. concentration of risk b. perceived vulnerability c. adverse selection d. skewed distribution effect - CORRECT ANSWER C adverse selection 5. Which of the following is a disadvantage of providing flexibility in benefit choice? a. The flexible benefits plans do not cover higher-risk employees. b. There is a risk that employees may choose an inappropriate benefits package. c. The flexible benefits plans are typically discriminatory in nature. d. There is a risk that these plans would increase the attrition rate. - CORRECT ANSWER b. There is a risk that employees may choose an inappropriate benefits package.