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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following best describes present value?

A) The desired value in the future and what needs to be invested today to realize that amount
B) The current value of holdings
C) The current value of holdings and how much it will grow over time at a given rate of return
D) The difference between the desired value in the future and the current value as a percentage of the desired value

2. Regarding presentations to executives, which of the following is most accurate?

A) Use multiple media
B) Include all details related to the issue
C) Leave backup data out of the presentation so there is time to develop an effective response to unexpected questions
D) Keep them brief

3. When would an employee most likely receive a differential in addition to the regular hourly rate?

A) When working in locations other than the corporate office
B) When working in more than one department
C) When working less time than his or her normal schedule
D) When working a holiday or weekend

4. The "return" represented by the Total Shareholder Return (TSR) metric is the increase in what?

A) Increased market value and reinvested dividends paid
B) Earnings
C) Market capitalization
D) Shares

5. What is one reason that it is important to perform a periodic audit of processes and results?

A) It determines what information and data sources will be used in the audit
B) It is required by the Department of Labor
C) It builds in a process of continuous improvement
D) It is required in determining increase budgets

Solutions: