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WorldatWork C1 Exam Syllabus Topics:

WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following statements regarding the Worker Economic Opportunity Act is most accurate?

A) Employees must hold options for at least 3 months.
B) Stock options may be granted at a 20% discount
C) Employers must include stock profits in overtime calculations.
D) Employees are not required to participate

2. If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

A) Compensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.
B) Compensation costs and revenue increase at approximately the same rate.
C) Compensation costs eventually stabilize and become a consistent percent of revenue.
D) Compensation costs eventually decrease as a percent of revenue, increasing profit growth.

3. When would an employee most likely receive a differential in addition to the regular hourly rate?

A) When working in locations other than the corporate office
B) When working in more than one department
C) When working a holiday or weekend
D) When working less time than his or her normal schedule

4. Which of the following best describes present value?

A) The current value of holdings
B) The difference between the desired value in the future and the current value as a percentage of the desired value
C) The desired value in the future and what needs to be invested today to realize that amount
D) The current value of holdings and how much it will grow over time at a given rate of return

5. Employer-sponsored death benefits are most commonly based on which of the following?

A) The employee's health history
B) The employee's annual salary
C) The size of the employee's family
D) The employee's premium contributions

Solutions: