Question

25) As Monty Corp., a shoe manufacturer, grows more profitable, it wants to become more competitive as an employer in the labor market. Juliet, the human resource manager, urges the company to develop a more attractive package of benefits, rather than simply raising salaries. Which statement best supports Juliet's argument?

A) Employees do not pay income taxes on most benefits they receive.

B) Benefits are harder for employees to understand than pay structures.

C) Employees could get a better deal if they bought their own insurance policies.

D) Higher cash compensation gives employees more purchasing power.

E) Different employees look for different types of benefits.

26) What is an advantage of providing benefits instead of cash compensation?

A) It is simpler to pay compensation in benefits than in cash.

B) Benefits give greater control to employees over cash compensation.

C) All companies that provide benefits become eligible for tax breaks by state and federal agencies.

D) Younger employees place more importance on benefits than cash compensation.

E) Employers can assemble creative benefits packages that give them a competitive advantage.

27) Toby is an engineer at a paint manufacturing company. However, a chemical spill at the factory caused an accident that left him permanently disabled. Which program is specifically designed to help employees like Toby?

A) unqualified retirement plan

B) vested-benefit plan

C) Social Security

D) defined-benefit plan

E) work-sharing plan

28) What is characteristic of benefits required by the Social Security Act?

A) Workers receive no benefits until they reach the full retirement age.

B) Workers are compensated according to their past earnings and retirement age.

C) Workers receive increased benefits when they earn more than the exempt amount.

D) The cost of the program is borne entirely by the employers, who pay a payroll tax.

E) The program benefits persons who are financially dependent on current workers.

Answer 1

Below are the correct options. Pl rate and comment in case of further doubts.

25 (A)- Employees do not pay income taxes on most benefits they receive.

26 (E)- Employers can assemble creative benefits packages that give them a competitive advantage.

27 (C)- Social Security

28 (B)- Workers are compensated according to their past earnings and retirement age.