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28. True or False. Under U.S. law, any person who pays taxes can contribute to an IRA, and the contributions are tax-free.


44. True or False. Managers, executives, and lower level employees should all go through the same type of termination process.


49. True or False. If an organization offers leave benefits beyond those required by law, it should never make a declarative statement about this in its handbook


51. Which of the following assessments does not always need to be considered depending on the international assignment?

A. Person-organization fit

B. Personality-job fit

C. Language ability

D. Suitability of immediate family


52. The ERISA Act requires all of the following except:

A. All employees who have worked for more than one year and are over 21 years of age must be offered participation in any company-sponsored retirement plans.

B. Federal vesting rules must be followed, with a maximum vesting period of 100% at five years, or 20% per year from years 3 through 7.

C. Employee retirement accounts must be portable. When the employee changes jobs, their retirement funds can be transferred to their new employer or another qualified investment.

D. Fiduciaries who manage company retirement programs must act under the prudent man concept that says they should use care and diligence when investing retirement funds.

E. All employers must provide some form of employee retirement system for employees who are over the age of 21 and who request retirement accounts.


53. Maria is conducting a job evaluation in her organization by breaking each job down into component skills or abilities. After she completes that task, she will assign points to each skill or ability based on its difficulty. Maria is using the ________ method of job evaluation.

a. job ranking

b. point-factor

c. factor comparison

d. job hierarchy


54. Giorgio intentionally inserted an Internet worm into his company’s computer systems because he received low evaluation scores this period. Giorgio is guilty of:

A. Gross negligence

B. Just cause

C. A mistake

D. Employee resistance to change

E. Serious misconduct


55. Variable pay is:

A. compensation based on the reduction of the company’s variable costs.

B. compensation that varies based on the number of hours an employee works.

C. a payment made to a supplier in multiple installments.

D. compensation awarded on the basis of individual results or performance.

E. a payment made to employees based on willingness to work overtime.


56. John is always working to improve his cultural competence because his organization competes on a global scale with facilities in many different countries and no real “headquarters” in any country. John’s organization is in the ________ stage of corporate globalization.

a. domestic

b. international

c. multinational

d. transnational


57. Signs of potential violence include all but:

A. verbal threats

B. stalking and harassment

C. alcohol and/or drug abuse

D. employee cohesion

E. intentional property damage


58. Carl was dealing with a difficult employee problem. Doubting that he can remain objective in the situation, Carl asks Andrei to help him resolve the situation. It appears Carl is using the _________ ethical approach.

a. Golden Rule

b. four-way test

c. stakeholders’ approach

d. discernment and advice


59. Katrina’s organization is hiring for low-skilled jobs in an industry where unemployment is high and it is easy to find replacement workers. Adopting a(n) ________ organizational philosophy on compensation could allow her to hire plenty of workers.

a. wage compression

b. below-the-market

c. pay for longevity

d. competency-based pay


60. Management suspects it was Ramon who tipped off a safety inspector that one of the managers had hidden chemicals from the lab in the trunk of his car until the inspection was completed. After the inspection, managers began changing Ramon’s schedule and job duties daily. Ramon found that he could not plan for his children to be cared for while he was at work because his work schedule kept changing. Eventually, Ramon quit. It is likely Ramon experienced __________ discharge.

a. wrongful

b. constructive

c. economic

d. express


61. Wynona met an old friend for lunch. During the meal, Wynona mentioned that her company needed some help on their tax reporting. Wynona’s friend said that she was now an accounting consultant and had worked with many local organizations to streamline their tax reports. Wynona gave her a copy of the tax information for the company the next day and showed her friend what the issues were. A week later, Wynona’s friend brought completed copies of the tax forms necessary for Wynona’s company to her office. It would appear that Wynona created a(n) ________ contract when she gave her friend the tax forms.

a. express

b. implied

c. quasi

d. collective


62. ESOPs motivate employees because _______________.

a. employees will get something for nothing

b. employees will act more like owners

c. employees can reduce their work schedule

d. employees can expect higher base pay


63._____ organizations tend to believe that their values and culture are superior to others and they will therefore frequently choose to staff international facilities with home-country managers.

a. Ethocentric

b. Polycentric

c. Regiocentric

d. Geocentric


64. What mechanism is used to ensure that a company investigates any disciplinary action taken fully and fairly and makes sure that the disciplinary action fits the level of the offense?

A. The coaching model

B. The seven tests for Just Cause

C. Employee assistance programs

D. The discipline model

E. The code of conduct


65. Macy’s organization provides group health insurance to its employees. According to the ________, the organization must issue a “Summary Plan Description” that describes the plan and how it works in plain language.

a. Consolidated Omnibus Budget Reconciliation Act of 1985

b. Health Insurance Portability and Accountability Act of 1996

c. Employee Retirement Income Security Act of 1974

d. Social Security


66. Jacob’s manager asks him to organize a blood drive for the organization. The manager tells Jacob that if he accepts the assignment, he will be awarded Employee of the Month. Jacob has organized blood drives in the past and knows how much work is involved. He does not doubt that his manager can deliver on the promise of the award. However, Jacob has always thought that the award was silly. According to expectancy theory, Jacob is unmotivated to accept the assignment because _________ is lacking.

a. valence

b. instrumentality

c. expectancy

d. significance


67. Executive compensation in the form of a deferred contribution to the executive’s retirement accounts is one of the most common forms of _________ retirement funds.

A. governed

B. qualified

C. nonqualified

D. challenged


68. When a person does something because they like it, it is interesting and personally satisfying, and they want to do it, they are receiving _______________.

A. Intrinsic rewards

B. External rewards

C. Altruistic rewards

D. Autonomous rewards

E. Extrinsic rewards


69. Alexander did not make many sales this quarter. He considered adding a few fake entries to his quarterly report. However, he decided not to do so when the boss mentioned that the new computer software is designed to catch any inconsistencies. It appears Alexander is at the _________ of moral development.

a. preconventional level

b. conventional level

c. postconventional level

d. neoconventional level


70. OSHA cited a manufacturing company for a __________ violation for exposing workers to unguarded hazardous machinery. An inspection found that the company removed the machine guarding to increase the speed of product output and knowingly permitted workers to operate the machines in this unsafe manner.

a. willful

b. serious

c. other than serious

d. de minimis


71. Melissa’s boss told her to change the numbers on a balance sheet to make things look better for an upcoming board meeting. Melissa does not want to do it, but she really needs the job. She decides to go ahead and make the change. It appears Melissa’s justification for her unethical behavior is ________.

a. Disregard or distortion of consequences

b. I did it for the good of others or the company

c. I was only following orders

d. I’m not as bad as the others


72. Kyle is exhausted from working overtime to get his projects done. His manager asked another employee to help Kyle with his work so that Kyle can work regular hours with no overtime. According to learning theory, this is __________.

a. positive reinforcement

b. negative reinforcement

c. punishment

d. avoidance reinforcement.


73. Type A personalities experience ________________________.

A. the same amount of stress as Type B personalities

B. less stress than Type B personalities

C. more stress than Type B personalities

D. immeasurable stress


74. Acme Global is closing one of its plants immediately and laying off all 200 workers. As part of the closure, Acme Global will give each employee at the plant 60 days of pay and benefits. This will help Acme Global to be in compliance with the _________.

a. Railway Labor Act of 1926

b. National Labor Relations Act of 1935

c. Worker Adjustment and Retraining Notification Act of 1988

d. Labor Management Reporting Disclosure Act of 1959


75. Alfred has requested unpaid leave to care for his wife. She was injured while serving in the Army in Afghanistan. Alfred may be able to take this leave and return to his original job (or an equivalent one) under ________.

a. Social Security

b. the Affordable Care Act

c. the Family Medical Leave Act

d. Medicare


76. Under the idea of corporate social responsibility, companies must do the following:

A. provide employees with safe working conditions

B. provide consumers with safe products and services

C. compete fairly with competitors

D. all of the choices are correct


77. What percentage of international assignments fail mainly due to the inability to adapt to cultural differences?

A. 75%

B. 50%

C. 33%

D. 10%


78. Shannon is one of the best appliance repair people in her department. She can quickly disassemble appliances to diagnose and fix problems. However, her manager has noted that when other repair people ask her for help, she hesitates and seems unsure of herself. According to situational management, her manager should use a(n)________ management style to manage Maria’s performance problem.

a. autocratic

b. consultative

c. participative

d. empowerment


79. A mediator is a neutral third party who helps resolve a conflict ______________ to impose a solution to the conflict

A. and has jurisdiction

B. but has no authority

C. and will use consensus

D. and has some authority


80. Which of the following types of PTO is mandatory for U.S. employers?

A. Paid federal holidays

B. Paid annual leave

C. Paid sick leave

D. Paid personal leave

E. There are no mandatory PTO requirements for companies in the U.S.


81. Acme Global matches its employees’ contributions to charities. In other words, if an employee gives $100 to a non-profit agency, Acme Global gives $100 as well. It appears Acme Global is reaching the ________ level of corporate social responsibility.

a. legal

b. ethical

c. benevolent

d. social


82. Samantha’s organization keeps a large amount of raw materials in stock to guard against market fluctuations. It appears the ________ dimension of cultural diversity is high at Samantha’s organization.

a. assertiveness

b. power distance

c. in-group collectivism

d. uncertainty avoidance


83. One of the most common problems in incentive systems design is:

A. creating a set of goals instead of focusing on just one goal at a time.

B. picking an expedient goal that is easy to measure, but doesn’t aim at the company’s strategic goals.

C. designing incentive goals that are capable of being affected by the targeted employee or group of employees.

D. completely separating the incentives from base pay.

E. making the incentive goals difficult to achieve.


84. _______ contain information about the physical and chemical properties of hazardous products.








85. The first major provision of the FLSA concerns ____________________.

A. underage employees

B. the unskilled workforce

C. new hires

D. the federal minimum wage


86. _____ offer health, education, training, and fitness, weight and lifestyle management, and health risk assessment services to employees.

A. Employee assistance programs

B. Triple option programs

C. Employee caretaker programs

D. Health hybrid programs

E. Employee wellness programs


87. Angeline manages a group of employees who she knows have the ability to perform, but who also feel like their performance doesn’t matter much to the success of the company, and are therefore not concerned with doing a great job. Angeline may want to approach this group using a ______management style to improve their collective performance.

A. Participative

B. Results driven

C. Consultative

D. Empowering

E. Autocratic


88. What percent of employees in a bargaining unit must sign authorization cards for the NLRB to hold a union representation election?

A. 10%

B. 25%

C. 30%

D. 50%

E. 51%


89. At the beginning of the quarter, Marcus sat down with his manager and set three goals for the next three months. The achievement of each goal will depend on Marcus. No one else in his work group can affect the work toward the goal. Which advantage of individual incentives does this illustrate?

a. easy to evaluate employee’s affect on team

b. ability to match rewards to employee desires

c. promotes the link between performance and results

d. may motivate less productive employees to work harder


90. __________ is the right to give orders, enforce obedience, make decisions, and commit resources, toward completing organizational goals.

A. Authority

B. Responsibility

C. Accountability

D. Ethics


91. _____________ is part of expectancy theory.

A. Goal-setting

B. Decision-making

C. Negotiation

D. Grievance


92. Since the Acme Global Corporation closed six of its plants last year, employees at the other plants have been feeling a great deal of stress. This type of stress falls into the _______ category of stress causes.

a. personality type

b. organizational culture and change

c. interpersonal relations

d. type of work


93. Executives at Acme Global are concerned that airline workers will go on strike and prevent shipments of products from reaching customers. However, the National Mediation Board is keeping airline management and labor in mediation to avoid a strike. The executives at Acme Global are relieved that the ________ limits the potential for strikes of airline workers.

a. Railway Labor Act of 1926

b. National Labor Relations Act of 1935 (Wagner Act)

c. Labor Management Relations Act of 1947 (Taft-Hartley Act)

d. Labor Management Reporting Disclosure Act of 1959


94. Employee rights under OSHA include all of the following except:

A. refusing to be interviewed by an inspector.

B. having a company representative present during any interview.

C. have working conditions free from unnecessary hazards.

D. file a complaint about hazardous working conditions.

E. reporting hazardous conditions to their supervisor.


95. Harold is paid based on a percentage of the value of the products and services he sells. He is being paid by:

A. bonus

B. base pay

C. value pay

D. commission

E. merit


96. Macy is English and works for a U.S.-based company in England. It appears the company has made a(n) ________ staffing choice.

a. ethnocentric

b. polycentric

c. geocentric

d. domestic


97. Which of the following is NOT a progressive discipline action?

A. oral warning

B. Termination

C. Informal coaching talk

D. Disciplinary suspension

E. Informal written warning


98. When Acme Global asked Tamera to relocate to the company’s newest foreign plant, it paid her a salary equal to what she was making in the United States and gave her an allowance for extra expenses. It appears Acme Global is using the _________ approach to expatriate compensation.

a. balance sheet

b. split-pay

c. negotiation

d. localization


99. A routine component of executive compensation, common “perks” include all of the following except:

A. stock options.

B. use of company cars and aircraft.

C. home security systems.

D. club memberships.

E. tax planning assistance.


100. Erin knows exactly what benefits she will receive when she retires. She has worked for the organization for 20 years and will receive 65 percent of the average of her two highest years of pay. Erin’s retirement plan is a ________ plan.

a. defined benefit

b. defined contribution

c. vesting

d. experience






























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