MGMT 3351 Ch 1
UPDATED ACTUAL Questions and CORRECT Answers
Question: Which of the following is a TRUE statement about com- pensation? A. Compensation offers
only monetary rewards. B. Compensation offers both intrinsic and extrinsic re- wards. C.
Compensation offers only intrinsic rewards. D. Compensation offers only extrinsic rewards.
E. Compensation offers only subjective rewards.
Correct Answer: B.
Question: Which of the following refers to knowing that one's work matters in the lives of others? A.
Core compensation B. Employee benefits C. Intrinsic compensation D. Psychological
rewards E. Extrinsic compensation
Correct Answer: C.
Question: Which statement about extrinsic compensation is TRUE? A. Extrinsic compensation includes
any reward that may be internal to the individual but external to the organization. B.
Extrinsic compensation includes only nonmonetary rewards. C. Extrinsic compensation
includes any reward that makes employees feel better about themselves. D. Extrinsic
compensation includes both monetary and nonmonetary rewards. E. Extrinsic compensation
includes only monetary re- wards.
Correct Answer: D.
Question: In a pay-effort bargain, the basis for employee com- pensation is ________. A. labor market
compensation studies B. the organizational culture regarding wages C. an employee's job
performance level D. an employer's perception of what a job is worth E. an employee's
ability, skill, and knowledge
Correct Answer: C.
, Question: Monetary compensation is best described as ________. A. a small portion of a total
compensation package B. a cost-of-living adjustment C. an employee's core compensation D.
the experiential part of an employee's total compen- sation E. a type of intrinsic reward
Correct Answer: C.
Question: The chief reason that human resource and compensa- tion professionals in today's work
environment need to think like CEOs is to ________. A. achieve pay equity across all ranks
B. overcome the negative image of the HR depart- ment C. accomplish strategic
organizational goals D. ensure that salaries keep up with inflation E. communicate with
organizational stakeholders
Correct Answer: C.
Question: Income, higher company stock prices, economic value, strong positive brand identity, and
reputation can all be generated by acquiring _________. A. differentiation strategies B.
competitive advantage C. compensable factors D. capital equipment E. capital
Correct Answer: E.
Question: Economists call the sets of collective skills, knowledge, and abilities of employees
________. A. pay structures B. human capital C. employee benefits D. financial capital E.
pure capital
Correct Answer: B.
Question: What is the primary method used by companies to purchase the use of human capital? A.
Offering health benefits B. Providing pension programs C. Hiring the best recruiters D.
Paying wages and benefits E. Providing discretionary benefits
Correct Answer: D.
Question: Which two forces have contributed to a strategic ap- proach towards HR? A. Technological
advances and global competition B. A decline in global competition and a decline in
technological advances C. An increased use of robotics and a decline in im- ports D.
Technological advances and increases in payroll pro- cessing E. Global competition and the
declining use of robotics
UPDATED ACTUAL Questions and CORRECT Answers
Question: Which of the following is a TRUE statement about com- pensation? A. Compensation offers
only monetary rewards. B. Compensation offers both intrinsic and extrinsic re- wards. C.
Compensation offers only intrinsic rewards. D. Compensation offers only extrinsic rewards.
E. Compensation offers only subjective rewards.
Correct Answer: B.
Question: Which of the following refers to knowing that one's work matters in the lives of others? A.
Core compensation B. Employee benefits C. Intrinsic compensation D. Psychological
rewards E. Extrinsic compensation
Correct Answer: C.
Question: Which statement about extrinsic compensation is TRUE? A. Extrinsic compensation includes
any reward that may be internal to the individual but external to the organization. B.
Extrinsic compensation includes only nonmonetary rewards. C. Extrinsic compensation
includes any reward that makes employees feel better about themselves. D. Extrinsic
compensation includes both monetary and nonmonetary rewards. E. Extrinsic compensation
includes only monetary re- wards.
Correct Answer: D.
Question: In a pay-effort bargain, the basis for employee com- pensation is ________. A. labor market
compensation studies B. the organizational culture regarding wages C. an employee's job
performance level D. an employer's perception of what a job is worth E. an employee's
ability, skill, and knowledge
Correct Answer: C.
, Question: Monetary compensation is best described as ________. A. a small portion of a total
compensation package B. a cost-of-living adjustment C. an employee's core compensation D.
the experiential part of an employee's total compen- sation E. a type of intrinsic reward
Correct Answer: C.
Question: The chief reason that human resource and compensa- tion professionals in today's work
environment need to think like CEOs is to ________. A. achieve pay equity across all ranks
B. overcome the negative image of the HR depart- ment C. accomplish strategic
organizational goals D. ensure that salaries keep up with inflation E. communicate with
organizational stakeholders
Correct Answer: C.
Question: Income, higher company stock prices, economic value, strong positive brand identity, and
reputation can all be generated by acquiring _________. A. differentiation strategies B.
competitive advantage C. compensable factors D. capital equipment E. capital
Correct Answer: E.
Question: Economists call the sets of collective skills, knowledge, and abilities of employees
________. A. pay structures B. human capital C. employee benefits D. financial capital E.
pure capital
Correct Answer: B.
Question: What is the primary method used by companies to purchase the use of human capital? A.
Offering health benefits B. Providing pension programs C. Hiring the best recruiters D.
Paying wages and benefits E. Providing discretionary benefits
Correct Answer: D.
Question: Which two forces have contributed to a strategic ap- proach towards HR? A. Technological
advances and global competition B. A decline in global competition and a decline in
technological advances C. An increased use of robotics and a decline in im- ports D.
Technological advances and increases in payroll pro- cessing E. Global competition and the
declining use of robotics
