SOLVED

11) John is just hired by a software company as a programmer. He is also a part-time student at the local college and needs just a few credits to graduate from this college. A college degree is required in order to work as a programmer in this software company. Therefore, John receives below-minimum pay rate until he graduates from college. What type of pay rate does John receive? A) green circle rates B) red circle rate C) midpoint pay rate D) two-tier pay rate 12) This type of pay rate applies to an employee who is demoted but is paid more than the maximum rate for the pay grade he is now in. A) graduated pay B) green circle C) red circle D) multi-tier pay 13) How are compa-ratios calculated? A) dividing the green circle rates midpoint by the normal pay range B) dividing the employee’s pay rate by the market line rate C) dividing an employee’s pay rate by the pay range midpoint D) dividing the red circle rates by the normal pay range 14) Richard’s job has a compa-ratio of 0.85. What does this ratio tell about Richard’s pay rate? A) Richard’s pay is highly competitive with the market. B) Richard’s pay is not competitive with the market. C) There is no way to judge the competitiveness of Richard’s pay. D) You need more information to be able to judge Richard’s pay. 15) Which of the following theories suggests that an employee must regard his own ratio of merit increase pay to performance as similar to the ratio for other comparably performing people in the company? A) comparable ratio theory B) comparable pay theory C) equality theory D) equity theory 16) With which sales compensation plan does the level of pay not vary when sales volume does? A) commission-only plan B) salary-only (base pay) plan C) salary (base pay)-plus-bonus plan D) salary (base pay)-plus-commission plan 17) Which scenario would be appropriate for using a salary-only plan? A) the salesperson is selling high-priced products with long lead times B) the salesperson has substantial influence over sales C) the company is looking to save money due to budget constraints D) the company is looking to create competition among its sales staff 18) This type of sales incentive compensation plan offers the sales person a salary and further compensation if they meet a specific, exceptional sales goal. A) salary-plus-bonus B) salary-plus-commission C) salary-plus-draw D) salary-plus-graduated commission 19) Jasmine Black believes that the company should share part of the risk for her sales position. Which sales compensation plan should she pursue? A) salary-plus-bonus plan B) salary-plus-commission plan C) commission-plus-draw plan D) commission-only plan 20) A recently opened car dealer uses an incentive compensation plan for its sales people. The dealer provides money to its salespeople to cover basic living expenses and then shares a fixed percentage of the selling price of each car that a salesperson sells. However, the salesperson should repay the subsistence pay component within a year; otherwise he/she cannot continue in the employment of this dealer. What type of sales compensation plan does this dealer adopt? A) salary-plus-bonus B) salary-plus-commission C) commission-plus-draw D) commission only