1. Right Answer: B
Explanation: Answer option B is correct.An entitlement culture rewards longevity in the job. If increased productivity is a function of time on the job, an entitlement culture will encourage employees to stay with the company. Line of sight (A) occurs when employees know that their performance impacts their pay. A highly competitive workforce (D) is more likely to exist in a pay-for-performance culture. A workforce with a highly desired skill set (C) would be better served by a pay-for-performance culture.Chapter: Compensation and BenefitsObjective: Review Questions
2. Right Answer: B
Explanation: Answer option B is correct.Chapter: Compensation and BenefitsObjective: Compensation
3. Right Answer: B
Explanation: Answer option B is correct.Summary plan descriptions are required only for group health plans, and not for defined contribution plans, defined benefit plans, or FSAs.Chapter: Compensation and BenefitsObjective: Review Questions
4. Right Answer: A
Explanation: Answer option A is correct.Workers age 40 or older who are asked to sign a waiver of their rights must be given 21 days to consider the agreement before signing it, unless they are part of a group termination or layoff. In that case, they must be given 45 days to sign the agreement (B). In both instances, they may revoke the agreement within 7 days(D). The OWBPA does not require 60 days to consider the agreement (C).Chapter: Compensation and BenefitsObjective: Review Questions
5. Right Answer: C
Explanation: Answer option C is correct.The Unemployment Compensation Amendments of 1992 required 20 percent withholding from some distributions. OBRA capped executive pay (B), required that group health coverage be offered when children are placed for adoption before the adoption is finalized (D), and required health plans to honor qualified medical child-support orders (A).Chapter: Compensation and BenefitsObjective: Review Questions
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