COMMERCE 4BE3 Study Guide - Quiz Guide: High Tech, Employee Stock Option, Libertarian Socialism
26 Jun 2018
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Chapter 11 – MindTap
1. A particular manufacturer wants to reward employees based on the company's ability to
reduce the number of direct and indirect labour hours associated with one unit of output.
What kind of gain-sharing plan is this organization contemplating?
a. Improshare
b. Scanlon
c. Rucker
d. current distribution
2. ABC Ltd. uses a series of independent measures in its gain-sharing formula, including
labour/material usage, quality metrics, customer satisfaction, and number of accidents.
Which component will be included in a gain-sharing plan if it is stipulated that no bonus will
be paid for periods in which work-related accidents occurred?
a. modifier
b. historical record
c. performance measure
d. target achievement
3. What is the key to ensuring the viability of the gain-sharing plan?
a. bonus formula
b. deciding the split
c. employee participation
d. valid historical baseline
4. Which of the following is NOT associated with goal-sharing plans?
a. There is no systematic link between performance improvements and bonus pools.
b. Goals are usually established for one or more performance indicators.
c. Cost savings need to be quantified.
d. Goal-sharing plans tend to be very flexible.
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5. What is a necessary component of goal-sharing plans?
a. employee participation
b. expectation of continuity
c. achievement levels
d. systematic link between performance improvements and bonus pool
6. Why are "top hat" profit-sharing plans NOT eligible for registration as a deferred profit-sharing plan?
a. They are only available to front-line employees.
b. They are not widely available to all employees.
c. They are linked to retirement savings plans.
d. The pay-out percentage is at management's discretion.
7. Which base for allocating the profit-sharing bonus is least used by Canadian firms?
a. seniority
b. individual performance
c. equal distribution
d. multiple bases
8. Which statement best describes an employee stock option plan?
a. Employees are granted participation units in a pool of equities of client firms.
b. Employees provide some kind of direct payment in return for company shares.
c. Employees receive options to purchase company stock at a future time at a fixed price.
d. Employees receive company stock at no cost to themselves.
9. Which statement best describes the notion of "share appreciation rights" provided to a
manager in a publicly traded company?
a. The manager receives a percentage of her salary in the form of shares.
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