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Chapter 10

MHR 523 Chapter 10 Test Bank

Human Resources
Course Code
MHR 523
Ted Mock

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Student: ___________________________________________________________________________
1. In compensation administration, pay is called
A. indirect compensation
B. absolute compensation
C. direct compensation
D. relative compensation
E. equity compensation
2. In compensation administration, benefits and services are referred to as
A. indirect compensation
B. equity compensation
C. absolute compensation
D. direct compensation
E. relative compensation
3. Benefits and services are referred to as indirect compensation because
A. they are based on critical job factors or performance
B. they are given indirectly rather than appearing on a pay cheque
C. they can't be spent like money
D. they are usually extended as a condition of employment rather than directly related to performance
E. they are paid out to other family members
4. In compensation administration, benefits and services seek to satisfy several objectives, including
A. societal objectives only
B. organizational objectives only
C. employee objectives only
D. both societal and organizational objectives
E. three objectives: employee, societal and organizational
5. Benefits and services amount to over __________ of the average Canadian firm's total payroll costs.
A. 15 percent
B. 25 percent
C. 30 percent
D. 40 percent
E. 50 percent

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6. Some of the benefits of indirect compensation to employers usually include all the following except
A. reduced employee fatigue
B. satisfied employees
C. reduced turnover
D. enhanced recruitment
E. increased labour unrest
7. Benefits that employers gain from indirect compensation usually include
A. increased turnover
B. higher overtime costs
C. increased labour unrest and/or moves to unionize
D. assisting recruitment efforts
E. increased worker fatigue
8. The objectives of society, organizations and employees have encouraged rapid growth of benefits and
services in all of the following areas except
A. income security
B. life insurance
C. employment insurance
D. time-off
E. retirement plans
9. The basic types of benefits and services include those that are
A. legally required
B. demanded by employees
C. low cost
D. required by union contracts
E. deal with health matters
10. One of the reasons legally required benefits and services are important to human resource departments is
A. the organization holds the human resource department responsible for meeting legal obligations
B. failure to obey legal requirements can decrease absenteeism and turnover
C. failure to meet legal obligations can result in organizational savings
D. failure to meet legal requirements is one of the major causes of unionization
E. they replace voluntary organizational benefits

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11. Sources of financial protection provided workers by government legislation include all of the following
A. minimum wage acts
B. human rights acts
C. Canada Pension Plan
D. workers compensation acts
E. Employment Insurance
12. The Canada Pension Plan and the Quebec Pension Plan are both contributory plans, which means that
A. only employees contribute to the plans
B. only employers contribute to the plans
C. both the employer and the employee pay part of the cost
D. employers only have to contribute if they wish to
E. employees may withdraw their contributions by dropping out of the plans
13. The Canada Pension Plan is all the following except
A. mandatory
B. portable
C. contributory
D. guaranteed
E. applicable to all employees in Canada
14. In 1999 the Supreme Court of Canada ruled that governments cannot limit benefits by discriminating
A. same-sex couples
B. common-law opposite-sex couples
C. all common-law relationships (both same-sex and opposite-sex)
D. common-law same-sex couples
E. elderly couples
15. Unemployment insurance was started in Canada in 1940, and was further significantly modified by the
Unemployment Insurance Act of 1971; in 1995 the concept was officially renamed
A. unemployment assurance
B. unemployment insurance 1995
C. employment insurance
D. employment equity
E. guaranteed income supplement (GIS)
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