Chapter 01 – 14e
1) Total CEO annual compensation at S&P 500 companies is roughly $12.3 million. At just
over half that total ($6.5 million), which compensation component comprises the majority of that
total compensation amount?
A) Stock option awards
B) Salary
C) Stock grants
D) Bonuses
2) The "say on pay" and clawback provisions are included in which of the following federal
laws?
A) The Dodd-Frank Wall Street Reform and Consumer Protection Act
B) The Affordable Care Act of 2010
C) The Fair Labor Standards Act (FLSA)
D) The Cost-of-Living Act (COLA)
3) One of the reasons why the great majority of the uninsured in the United States are from
working families is that
A) many larger employers do not offer health insurance as it does not guarantee an
increase in productivity levels.
B) health insurance is costlier for larger employers.
C) many small employers are much less likely than larger employers to offer health
insurance to their employees.
D) most workers decline health insurance when it is offered by their employers.
4) The degree to which pay influences individual and aggregate motivation among
employees at any point in time is referred to as a(n):
Version 1 1
, A) sorting effect.
B) incentive effect.
C) turnover effect.
D) directional effect.
5) Which of the following is an example of a relational return?
A) A short-term incentive
B) Employment security
C) Allowances
D) Income protection
6) Which of the following is given as an increment to base pay in recognition of past work
behavior?
A) Merit bonuses
B) Relational returns
C) Merit increases
D) A short-term incentive
7) GreenRain Corp. faces an increase in its employee turnover rate. The CEO calls for a
board meeting with the senior executives to discuss the issue. Who among the following suggests
increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?
Version 1 2
1) Total CEO annual compensation at S&P 500 companies is roughly $12.3 million. At just
over half that total ($6.5 million), which compensation component comprises the majority of that
total compensation amount?
A) Stock option awards
B) Salary
C) Stock grants
D) Bonuses
2) The "say on pay" and clawback provisions are included in which of the following federal
laws?
A) The Dodd-Frank Wall Street Reform and Consumer Protection Act
B) The Affordable Care Act of 2010
C) The Fair Labor Standards Act (FLSA)
D) The Cost-of-Living Act (COLA)
3) One of the reasons why the great majority of the uninsured in the United States are from
working families is that
A) many larger employers do not offer health insurance as it does not guarantee an
increase in productivity levels.
B) health insurance is costlier for larger employers.
C) many small employers are much less likely than larger employers to offer health
insurance to their employees.
D) most workers decline health insurance when it is offered by their employers.
4) The degree to which pay influences individual and aggregate motivation among
employees at any point in time is referred to as a(n):
Version 1 1
, A) sorting effect.
B) incentive effect.
C) turnover effect.
D) directional effect.
5) Which of the following is an example of a relational return?
A) A short-term incentive
B) Employment security
C) Allowances
D) Income protection
6) Which of the following is given as an increment to base pay in recognition of past work
behavior?
A) Merit bonuses
B) Relational returns
C) Merit increases
D) A short-term incentive
7) GreenRain Corp. faces an increase in its employee turnover rate. The CEO calls for a
board meeting with the senior executives to discuss the issue. Who among the following suggests
increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?
Version 1 2
