Which of the following statements best describes defined contribution (DC) plans?

• A.The employee assumes the risk for the investments.
• B.They require complex actuarial calculations and assumptions.
• C.They generally provide better benefits to employees with longer service.
• D.The benefit is based on a formula that considers pay and service.

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Cash compensation is a reward intended to provide what type of motivation?

• A.Intrinsic
• B.Extrinsic

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What guides the design of all human resources programs?

• A.The business strategy
• B.The human resources strategy
• C.The corporate mission
• D.Program design and administration

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How do commissions typically differ from annual incentives for non-executive employees?

• A.They are intended to align the interests of the employee with those of the organization.
• B.They tend to make up the larger portion of an employee's total compensation.
• C.They are based on a predetermined performance and reward schedule.
• D.They are offered to motivate employee performance.

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Which of the following is the most accurate statement about the business strategy?

• A.It usually is a secondary consideration in compensation design.
• B.It is the company's plan for competitive positioning of its products or services.
• C.It must be written after the company's operating plans are approved by senior management.
• D.It is developed for compensation, benefits and the work-life using the HR strategy as a basis.

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