Question

QUESTION 22

Kelly, a new employee, learns her company provides a group insurance plan that she can enroll in. Her friend, Michael, suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which of the following weakens Michael's argument?

		Individual plans are typically offered only to senior executives.
		Employees get more for their money when they receive insurance as a group benefit.
		Rates for group insurance are typically lower than those of individual policies.
		Kelly will get more take-home pay if she opts for a group insurance plan.
		Kelly will not be eligible for other benefits if she does not enroll in a group insurance plan.

QUESTION 18

John is the head of the insurance claims department. John works for longer hours than his subordinates, however, he is not paid overtime for working more than 40 hours per week. Under the FLSA, which of the following will justify the organization's decision not to give John overtime pay?

		John is not a U.S. citizen.
		John is considered as an exempt employee.
		John is unmarried.
		John has lower educational qualifications than his subordinates.
		John comes from an economically strong background.

2 points   

QUESTION 19

John is the owner of the restaurant, The Round. He decides to increase employee motivation by introducing benefit packages. However, Nina, the manager, suggests that employees will be more motivated if John increases their actual wages. Which of the following statements, if true, strengthens Nina's argument?

		Employees do not prefer cash compensation due to higher tax rates in the state.
		John's competitor, Mark, gives many benefits to his employees.
		Most of the employees at The Round belong to the age group that looks forward to pensions.
		Benefit packages are more difficult to understand by employees than pay structures.
		The state has introduced mandatory requirements for employee benefits. QUESTION 24 Leroy joins the human resource department at ZenFuels Inc., where the production workers are represented by a union. Which of the following goals would Leroy most likely be expected to work toward in supporting any negotiations with the union? discouraging employees from forming a union keeping operations flexible and retaining some control over schedules ensuring a regular flow of new members into the union raising the value of workers' compensation package making managers and workers into adversaries

Answer 1

22. Rates for group insurance are typically lower than those of individual policies.

The above statement weakens Michael's argument.

Group insurance is an insurance which covers a particular group of people, for exa, employees of an organization, the members of a society or association etc. The cost of group insurance is lower than that of individual insurance. Group insurance is cheaper because in this plan the volume of business is higher for the insurance companies. In group insurance no individual underwriting is needed,only the employer is held responsible for all types of documents processing. If Kelly goes for individual plan then she has to save money, because individual plans are more expensive than group insurance plans.

18. John is considered as an exempt employee.

Under the FLSA, the above statement will justify the organization's decision not to give John overtime pay.

Exempt employees are those who are hired for a job but are not guaranteed to receive minimum wage, compensation and overtime fees. The employer has the right not to pay extra, if the employee works for the extra hours and in turn gets paid for it.

In our case, John is the head of the insurance claims department. So he is already paid for his duties, so according to FLSA, no need to pay extra for John's overtime effort.

19. Benefit packages are more difficult to understand by employees than pay structures.

The above statement strengthens Nina's argument.

Pay structures relate to employees' actual wages. If the employer provides an increment in actual wages, the employees will be more happy and motivated to work. For them pay structures are easy to understand & it directly adds money to their account. Benefits are one time payment.

24. Raising the value of workers' compensation package.

The focus of Leroy must be on raising the value of workers compensation package.An employee should raise his value to get rewarded in workplace.