Site MapHelpFeedbackOnline Quizzes
Online Quizzes
(See related pages)

1
Which of the following is NOT an example of a benefit (or "perk") used in management compensation?
A)Free travel arrangements.
B)A bonus based on achieving performance goals.
C)Life insurance for family members.
D)Tickets to entertainment events.
2
The Coca-Cola Company links performance to compensation by:
A)requiring managers to have deferred bonus plans.
B)requiring executives to have a certain amount of stock options.
C)requiring directors to own a certain amount of the company's stock.
D)the use of a corporate code of ethics.
E)all of the above.
3
The higher the proportion of ______ is in total compensation, normally the higher the incentive for the manager to avoid risky outcomes.
A)Bonus.
B)Total compensation.
C)Salary.
D)Benefits ("perks'').
4
The objectives of management compensation, as for the objectives used to develop performance measurement systems, include all except for:
A)motivate managers to exert a high level of effort.
B)reduce uncertainty in the manager's environment.
C)to provide incentives for goal congruence.
D)to determine fairly the rewards due to managers for their effort.
5
Which of the bonus payment options have the following motivation?(+)Unlimited upside potential is highly motivating(-)Delay and uncertainty in reward reduces motivation
A)Current bonus
B)Deferred bonus
C)Stock options
D)Performance shares
E)Both C and D are correct.
6
The most common bonus compensation pools include:
A)Industry-based.
B)Benchmark-based.
C)Firm-based.
D)Activity-based.
7
Bases for management bonus compensation usually include:
A)stock price performance.
B)cost or profit center performance.
C)employee satisfaction.
D)All of the above are correct.
E)Only B and C are correct.
8
Which of the following bonus payment options tends to be short-term focused?
A)Current bonus
B)Deferred bonus
C)Stock options
D)Performance shares
E)Both A and B are correct.
9
An advantage of perks as a part of compensation is that:
A)They are deductible on the company's income taxes and are deferred for the manager's taxes.
B)They are a deferred deduction for both the company and the manager.
C)They are a deduction for the company but never taxed to the manager
D)They are taxed at a favorable rate for managers.
E)They can be deducted by the manager, though not by the company.
10
Which of the following compensation plans do not allow for a tax deduction to the firm?
A)Salary
B)Stock options – nonqualified plan
C)Stock options – qualified plan
D)Certain retirement plans
E)Other perks
11
Which of the following compensation plans is never taxed to the manager?
A)Salary
B)Stock options – nonqualified plan
C)Stock options – qualified plan
D)Certain retirement plans
E)Perks
12
Management compensation plans for a division of an organization are most likely to focus on the use of the bonus in which phase of the division's sales life cycle?
A)Product introduction.
B)Growth.
C)Maturity.
D)Decline.
13
Market value of equity is an objective measure that clearly shows:
A)what the firm's accountant determines the firm's value to be.
B)what credit agencies determine the value of the firm to be.
C)what stock analysts calculate as the firm's value.
D)the business valuation of the firm.
E)the total market value of the firm's outstanding common shares.
14
Which of the following is NOT a key measure of liquidity?
A)Current ratio.
B)Cash flow ratio.
C)Inventory turnover.
D)Gross margin percent.
15
Which of the following is NOT a method for valuing a firm?
A)Balanced scorecard method
B)Market value method
C)Book value method
D)The discounted cash flow method
E)Multiples based method





To learn more about the book this website supports, please visit its Information Center.
(c)2013 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Notice.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Blocher, 6eOnline Learning Center

Home > Chapter 20 > Online Quizzes