Checkup 5

Question 1

An employee who receives a fixed sum per unit of production is ________________.

Answer 1

piece-rate wages

Question 2

An individual who is paid a commission is paid a ________________ of the volume of business generated.

Answer 2

percentage

Question 3

An incentive payment plan for salaried employees may take the form of __________________________.

Answer 3

profit sharing

Question 4

____________ is the transfer of ownership of employee contributions to an employee.

Answer 4

Vesting

Question 5

Managers usually receive pay in the form of a __________.

Answer 5

salary

Question 6

___________ makes an employee more secure and has to do with pay level.

Answer 6

Seniority

Question 7

Competition in the marketplace may cause “_______-____________.”

Answer 7

job-hopping

Question 8

____________ seldom receive benefits other than wages or salaries.

Answer 8

Employees

Question 9

___________________________ is a particularly sensitive area of human relations in a business.

Answer 9

Wage and salary administration

Question 10

Joe receives $200 per month plus $8 of his sales.

Answer 10

salary plus commission

Question 11

Carolyn receives 5% of sales per month.

Answer 11

commissions

Question 12

Jim receives $800 per month plus 1% of annual production.

Answer 12

salary plus bonus

Question 13

Alice receives $.60 per unit that she produces.

Answer 13

piece-rate wages

Question 14

Susan receives $1,000 per month plus 1% of net profit in common stock.

Answer 14

profit sharing

Question 15

Joe produces 90 units in 40 hours. His pay is (40 x 1.90 = $76.00).

Answer 15

time wages

Question 16

List 5 factors that affect the pay level of an employee:
a) _____________
b) ____________
c) ______________
d) _______________
e) _______________

Answer 16

abilities of employee; relative importance of the job; seniority; unionization; federal and state regulations

Question 17

Pay differentials between employees are determined by ___________ jobs.

Answer 17

ranking

Question 18

Little incentive is provided for greater productivity by ___________________.

Answer 18

time wages

Question 19

A vacuum cleaner salesman would probably be paid a __________________.

Answer 19

commission

Question 20

A professional baseball player who receives additional compensation according to the number of home runs he hits receives a _________________________.

Answer 20

salary plus bonus

Question 21

The relative importance of a job in a business firm is determined by the __________ evaluation.

Answer 21

job