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WorldatWork C1 Exam Syllabus Topics:

WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What best describes the primary purpose of budgeting?

A) Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
B) Limiting spending to a fixed percentage of organizational revenue
C) Increasing profitability of the business annually to maximize shareholder/owner value
D) Making choices about spending based on expectations of performance

2. Step-rate increase programs provide employees the opportunity to receive two regular pay increases at which points?

A) At the anniversary date and at the annual merit increase date
B) Once when they move a step, and again when the step value changes
C) At established dates and then every six months thereafter
D) On January 1 and July 1 of each year

3. What best describes an effective core technique for communicating with executives?

A) Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.
B) Focus on negative issues first, such as compensation costs exceeding budget, to get their attention
C) Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.
D) Recommend a solution that will solve the issue and explain why it is the best solution available.

4. Which of the following statements best describes defined benefit (DB) plans?

A) Employees are at risk for financial resources.
B) Individual accounts must be maintained for each participant.
C) There is no promise of a specific benefit at retirement.
D) They are often integrated with government-sponsored programs.

5. A medical benefits plan provision ensuring that the correct plan is paying expenses when the member is covered under more than one plan is known as what?

A) Coordination of benefits
B) Deductible
C) Out-of-pocket expenses
D) Coinsurance

Solutions: