During orientation for your new job, you find out that the company offers both 401(k) and employee stock ownership plans. This portion of your compensation is called:
A) a commission.
B) profit sharing.
C) an incentive.
D) a wage.
E) benefits.
Question 2 - Royal Caribbean Cruises would like to add an additional ship to their fleet. A new ship will cost 1.4 billion to build. Royal Caribbean plans to use cash and a long-term loan to finance the production of the new ship. However, the current interest rate of a 900 million loan is 5, which Royal Caribbean feels is high. Which key consideration for choosing a form of financing does this example illustrate?
A) Amount of financing
B) Influence on company operations
C) External factors
D) Cost of financing
E) Term of financing
Question 3 - Your company just started offering a profit-sharing plan, which could increase your total compensation by as much as 25-if the company does well. This form of compensation is classified as:
A) a salary.
B) an incentive.
C) a benefit.
D) a commission.
E) a non-monetary form of compensation.
Question 4 - Before they seek financing, Mattel needs to be sure that obtaining a long-term loan to expand their production facilities will allow them to increase production, sales, and gain market share from Hasbro. Which key consideration for choosing a form of financing does this example illustrate?
A) Influence on company operations
B) External factors
C) Term of financing
D) Amount of financing
E) Cost of financing
Question 5 - Many computer programmers make 115,000 per year or more, and they sometimes have multiple companies bidding for their services. As HR manager for a software development firm, you want to attract the best candidates while keeping employment costs from increasing to unsustainable levels. If your competitors offer starting salaries of 115,000, which of the following is your best strategy?
A) Increase your starting salaries to 175,000.
B) Increase your starting salaries to 200,000.
C) Offer 135,000 plus a 30 cash bonus.
D) Offer 115,000 plus a generous array of non-monetary benefits.
E) Offer 75,000.
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