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WorldatWork C1 Exam Syllabus Topics:

WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Regarding medical plans, what is the out-of-pocket maximum?

A) The limit the member will be required to pay at each doctor visit
B) The maximum the plan will pay if the member is covered by another insurance plan
C) The lifetime limit for benefits to any one employee
D) The most that the member will be liable for in relation to co-insurance

2. To qualify for the executive exemption from the minimum wage and overtime provisions of the FLSA, among other things what must an employee do?

A) Customarily and regularly direct the work of at least two full-time employees
B) Perform work that is intellectual and varied
C) Devote less than 15% of his/her time to nonexempt work
D) Possess knowledge of an advanced type in business administration

3. How are the compensation communication needs of managers different from those of individual employees?

A) They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
B) They aren't. Managers are concerned about their compensation also.
C) They are also responsible for merit increases, incentives and hiring so they have greater information needs.
D) They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.

4. What is the top line or starting point of an organization's income?

A) Revenue
B) Net income
C) Operating profit
D) Gross profit

5. Your company has had a strong fiscal year with a 15% increase in net income over the prior fiscal year. Share prices are at an all time high. Working with Finance, you have arrived at a 2.5% merit increase budget for the next fiscal year, a smaller increase than the last fiscal year. Finance has indicated that some large capital expenditures will be needed next year, so the company needs to conserve resources. Additionally, Legal is in final negotiations on a lawsuit that may be very costly to the company. Word of the smaller increases has line management concerned that they will lose their best performers. Given all of these factors, what is your best course of action?

A) Recommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount
B) Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible
C) Meet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases
D) Implement the merit increase budget as is because the anticipated financial obligations have made it necessary

Solutions: