Saturday, April 29, 2017

Liberty University BUSI352 quiz 8 solutions answers right

Liberty University BUSI352 quiz 8 solutions answers right
How many versions: four versions

Question 1 Owen, a CFP® professional, works for a brokerage firm that requires any investment products or loans offered to a client must be proprietary products of the brokerage firm. One of Owen’s clients, “Dominic” that he has been providing financial planning services to for the past 10 years asked Owen to recommend a loan. Owen is still engaged in the financial planning process with this client. According to the CFP Code of Ethics, what action is Owen required to take?
Question 2 William, a CFP® professional, has been working with his new client Cole. He has completed all required disclosures and provided all written documents required for a financial planning engagement. Cole is 42, divorced, and has one child. William discussed Cole’s insurance coverage following a thorough review of Cole’s policies and recommended Cole purchase a disability policy and additional term life insurance through his employer. William also performed a retirement needs analysis and developed an investment plan he believes will help Cole achieve his goals. While presenting the retirement and investment plan, Cole mentioned that he was rejected for the life insurance for medical reasons that he does not wish to discuss with William. To comply with the Practice Standards of the Code of Ethics, William should:
Question 3 A grocery store puts chocolate chip cookies on sale, which increases the demand for milk. What are the two products?
Question 4 During a period of recession/contraction, which of the following would be true? 1: The supply of goods and services would be decreasing. 2: Interest rates would be decreasing. 3: Unemployment would be increasing. 4: Inflation would be decreasing.
Question 5 Which of the following is a fiscal policy tool used by Congress that influences the money supply and interest rates?
Question 6 The CFP Board’s Practice Standards are intended to:
Question 7 Under the CFP Board’s Rules of Conduct, violations of the Rules of Conduct may subject a certificant or registrant to discipline. Which of the following is true with respect to any such violations? 1: Discipline extends to the rights of registrants and certificants to use the CFP marks. 2: The rules are designed to be a basis for legal liability to any third party. 3: The CFP Board has the exclusive right to ensure that certificants and registrants meet and continue to meet the CFP Board’s initial and ongoing certification requirements.
Question 8 All of the following are examples of monetary policy except?
Question 9 If the price of a luxury car decreases by a small amount, and there is a significantly large increase in demand, what can be said about the demand?
Question 10 Due to a shortage in supply, the price of corn increases suddenly, causing a decrease in the demand for corn and an increase in the demand for carrots. Which term best describes the relationship between corn and carrots?
Question 11 Increasing inflation rates and increasing interest rates would be characteristic of:
Question 12 Rose is employed as a loan officer at a bank. Rose recently sat down and visited with her financial planner Julie, a CFP® professional. Rose was in need of cash and borrowed $15,000 from Julie. Based on Rule 3.7 of the CFP® Rules of Conduct (A certificant shall not lend money to a client.), which of the following statements is accurate?
Question 13 Which of the following is not specifically addressed in the CFP Board’s Standards of Professional Conduct?
Question 14 Low interest rates and high unemployment would be characteristic of what phase of the business cycle?
Question 15 Bob is a CFP® professional. He recently met with a new client, Jack, who requests a needs analysis concerning Jack’s life insurance situation. Jack is 42 years old, married, and has 2 children he plans to send to college. He wants Bob to evaluate how much and what type of insurance he should purchase. Which of the following is required to be provided to Jack according to the Code of Ethics?
The CFP board is a certification and standard-setting organization that
Which of the following is not part of the CFP Board's Standards of Professional Conduct?
Which of the following is not a principle in the Code of Ethics?
Which of the following best describes the intent behind the principles of the CFP Board's Code of Ethics?
Under the CFP Boards rules of Conduct, violations of the rules of conduct may subject a certificant or registrant to discipline. Which of the following is true with respect to any such violations?
Under the CFP Board's Rules of Conduct, which of the following are a category of rules within the CFP Boards Rules of Conduct?
The CFP Board's Practice Standards are intended to:
Which of the following are true with respect to the Practice Standards?
Which of the following does NOT apply to practice standard 500-2, which provides that the financial planning practitioner shall select appropriate products and services that are consistent with the client's _________.
Which of the following is true with respect to forms of discipline?
The commission may make the following decisions regarding a petition for reconsideration by a candidate for certification:
Which of the following is not a form of discipline under the Disciplinary Rules?
Which of the following definitions best defines a fiduciary under the CFP Board's Standards of Professional Conduct?
Which of the following is not specifically addressed in the CFP Board's Standards of Professional Conduct?
Bob, a CFP professional, has developed a comprehensive financial plan ofr his client, Sue. Based on the CFP board PRactice Standards which of the following should Bob do next?
According to practice standard 200-1 Determining a clients personal and Financial goals, needs and priories, which of the following ate necessary inputs to determine a client's goals?
Jill is a prospective client, recently approached Mike, a CFP professional with significant estate planning needs. Mike does not feel like he can adequately fulfill all of Jill's needs so he refers jill to a colleague who specializes in estate planning. According to the CFP code of Ethics, what principle did Mike Most clearly demonstrate?
Rose is employed as a loan officer at a bank. Rose recently sat down and visited with her financial planner Julie, a CFP professional. Rose was in need of cash and borrowed $15,000 from Kulie. Based on Rule 3.7 of the CFP rules of Conduct (A certificant shall not lend money to a client.), which of the following statements is accurate?



Liberty University BUSI352 quiz 7 solutions answers right

Liberty University BUSI352 quiz 7 solutions answers right
How many versions: three versions

Question 1 Which of the following is an undivided ownership in the property that, upon death of one owner, automatically passes to the surviving owner? 1: Tenants by the Entirety 2: Tenants in Common 3: Community Property 4: Joint Tenancy with Rights of Survivorship
Question 2 If Priscilla died with each of the following property interests, which will be excluded from her probate estate?
Question 3 This estate planning tool will cause assets to be included in non­grantor holder’s gross estate.
Question 4 The first step in the estate planning process includes:
Question 5 A tenancy by the entirety may be terminated in which of the following ways? 1: Death, whereby the survivor takes the entire tenancy 2: Mutual agreement 3: Divorce, which converts the tenancy into a tenancy in common or a joint tenancy 4: Severance, whereby one tenant transfers his or her interest to a third party with or without the consent of the other tenant
Question 6 Which of the following items will be retitled through probate?
Question 7 Steve has been married to Louise for six years. They are about to buy their first home and have come to you with some questions that they have regarding titling of the home. In your explanation of the different property ownership arrangements, which of the following titling structures can only be entered into by spouses?
Question 8 The unrestricted ability to ultimately name beneficiaries of income and corpus of a trust is known as:
Question 9 Which type of will complies with the statutes of the domiciliary state and is drawn by an attorney?
Question 10 Trusts are general tools that are beneficial in many financial planning situations. Many trust benefits, such as asset protection and control, are appropriate considerations for a family with a special needs person. Which of the following is generally correct regarding special needs trusts?
Question 11 Divorce is a very emotional time for those who are going through it and assistance from a financial advisor is generally helpful. Which of the following are common mistakes that are made by those going through divorce?
Question 12 Jose created a joint bank account for himself and his friend, Amparo. At what earliest point has a gift been made to Amparo?
Question 13 A tenancy by the entirety may be terminated in which of the following ways? 1: Death, whereby the survivor takes the entire estate 2: Mutual agreement 3: Divorce, which converts the estate into a tenancy in common or a joint tenancy 4: Severance, whereby one spouse transfers his or her interest to a third party but requires the consent of the other spouse
Question 14 Of the following types of ownership, which is available for married couples? 1: Tenancy by the entirety 2: Tenancy in common 3: JTWROS 4: Tenants by marriage
Question 15 A spendthrift clause:

Which of the following is included in the definition of estate planning?
1. Asset management.
2. Accumulation of wealth.
3. Asset preservation.
Which of the following statements is the best definition of estate planning?
Which of the following does not need estate planning?
a. Tom, age 30, married with two minor children, and a net worth of $375,000.
b. Carly, age 35, never been married, one severely disabled son.
c. Michelle, age 45, single, has a net worth of $450,000 and two dogs.
d. All of the above need estate planning.
The first step in the estate planning process includes:
Tyrone does not want to write a will. It upsets him to contemplate his own death and he simply desires to avoid the estate planning process. All of the following are risks Tyrone's estate may face due to Tyrone's inaction, except:
Which the following is a risk of failing to plan for the estate?
1. Property transfers contrary to the client's wishes.
2. The client's family may not be provided for financially.
3. The estate suffers liquidity problems at the client's death.
4. The estate may bear higher transfer costs.
Which the following is a risk of failing to plan for the estate?
1. Property transfers contrary to the client's wishes.
2. The client's family may not be provided for financially.
3. The estate suffers liquidity problems at the client's death.
4. The estate may bear higher transfer costs.
Which of the following documents appoints a surrogate decision-maker for health care?
a. Durable power of attorney for health care.
b. General power of appointment.
c. Life insurance beneficiary designation.
d. All of the above.
Which type of will is handwritten and does not generally require a witness?
Which type of will complies with the statues of the domiciliary state and is drawn by an attorney?
While he was in the hospital, Emile told his wife that if he died he wanted to give his fishing tackle to his son, Joseph; his golf equipment to his son, Joshua; his truck to his daughter, Abigail; and everything else to her (his wife). Emile died the next day without writing anything that he told his wife, but a nurse and another patient were in the room and heard his declarations. What type of will does Emile have, if any?
Maxine is terminally ill. Her doctors gave her twenty-four months to live thirty-six months ago. Maxine has decided that she does not want to be placed on life support. Which document will direct Maxine's doctors to refrain from putting her on life support?
Donald agreed to sell his house to his brother, but could not attend the closing date of the sale (act of sale). Of the following options, which would allow Donald's mother to attend the closing and sign the necessary documents on Donald's behalf?
Twenty-two years ago, Kyle and John began dating, and 19 years ago, they began living together. Last year, Kyle inherited over $9,000,000 from his grandfather. He wants to ensure that if he dies first, John will be taken care of for the rest of his life. Despite your insistence, Kyle does not have a will, and you have advised him previously that state intestacy laws do not protect same-sex partners. Which of the following asset ownership options would fulfill Kyle's goal of transferring assets to John at his death?
Steve has been married to Louise for six years. They are about to buy their first home and have come to you with some questions that they have regarding titling of the home. In your explanation of the different property ownership arrangements, which of the following titling structures can only be entered into by spouses?
Of the following types of ownership, which is available for married couples?
If Priscilla died with each of the following property interests, which will be excluded from her probate estate?
Which of the following is a disadvantage of the probate process?
Which of the following is considered an advantage of the probate process?
Which of the following is not a party to a trust?
A spendthrift clause:
This estate planning tool will cause assets to be included in non-grantor holder's gross estate:
Which of the following tasks are the primary responsibilities of the personal representative?
Which of the following does NOT relate to a will? 



Liberty University BUSI 352 quiz 6 solutions answers right

Liberty University BUSI 352 quiz 6 solutions answers right
How many versions: three versions

Question 1 Jason has three capital transactions for the current year. Short­term capital loss of $5,000 Short­term capital gain of $3,000 Long­term capital loss of $2,000 What is the net effect on Jason’s taxes if he is in the 35% tax bracket?
Question 2 Cobalt, a calendar­year S corporation, was incorporated in 2010. The company had the following taxable income and distributions each year: Year 2010: Taxable income ($20,000); Distributions $0 Year 2011: Taxable income ($30,000); Distributions $0 Year 2012: Taxable income $150,000; Distributions $60,000 Year 2013: Taxable income $400,000; Distributions $175,000 Cobalt has a single shareholder. His original basis in the stock was $150,000. What is the shareholder’s basis at the end of 2013?
Question 3 Angie and Patrick were married on September 1 of this year. Following a honeymoon in Hawaii, Patrick died of a heart attack. Neither Angie nor Patrick had any dependents. What filing status can Angie use this year?
Question 4 Which of the following is not excluded from gross income?
Question 5 Which of the following statements is/are true? 1: LLCs offer limited liability protection to members. 2: S corporations offer limited liability protection to owners.
Question 6 Which of the following statements is/are true? 1: Partnerships offer limited liability protection to partners. 2: LLCs offer limited liability protection to members.
Question 7 Greg just received his student loan statement that indicates he paid $3,000 of interest on his student loan during the tax year. How much of the loan may he deduct?
Question 8 Which of the following statements is/are true? 1: Partnerships require registration with the state. 2: Limited partnerships require registration with the state.
Question 9 Trina gave her nephew Roy 100 shares of HLM Corporation stock that she purchased 6 months ago for $10,000. At the time of the gift, the fair market value of the stock was $12,000. Which of the following statements concerning the stock is correct?
Question 10 Which entity will meet the following requirements? 1: Flow­through entity 2: Limited liability 3: Can have foreign investors
Question 11 An S corporation has the following information for the taxable year. Net Income before the items below $90,000 Bill’s Salary ($38,000) Other Income $29,000 Other Expenses ($14,000) Net Income $67,000 Bill is a 20 percent owner of the S corporation and he performs services for the business as an employee. What is Bill’s self­employment income?
Question 12 Isaac is a middle school teacher with gross income this year of $35,000. Based on the following, what is Isaac’s adjusted gross income? 1: $4,000 qualified education interest expense 2: $2,000 alimony received 3: $1,000 contribution to a traditional IRA 4: $750 in educator expenses
Question 13 An architect performed services for Bill and Sue and, in lieu of her normal fee, accepted a 10% interest in a partnership with a fair market value of $10,000. How much income from this arrangement should the architect report on her income tax return?
Question 14 Aurora had the following cash inflows during the current taxable year. 1: Wages: $45,000 2: Loan Proceeds: $2,000 3: Child Support: $5,000 4: Stock Sale Proceeds: $3,000 5: U.S. Government Bond Interest: $1,000 What is her gross income for income tax purposes if her adjusted tax basis in the stock was $2,000?
Question 15 Which of the following statements is true regarding refundable tax credits?

Cobalt, a calendar-year S corporation, was incorporated in 2010. The company had the following taxable income and distributions each year:
Year 2010: Taxable income ($20,000); Distributions $0
Year 2011: Taxable income ($30,000); Distributions $0
Year 2012: Taxable income $150,000; Distributions $60,000
Year 2013: Taxable income $400,000; Distributions $175,000
Cobalt has a single shareholder. His original basis in the stock was $150,000. What is the shareholder's basis at the end of 2013?
Which type of entity could possibly file any of the following forms?
1: Form 1040
2: Form 1065
3: Form 1120S
Arturo, a consultant, uses the cash method of accounting for his business. Arturo recently provided consulting services to his best customer Sergio. When should Arturo recognize income from this service?
Which entity will meet the following requirements?
1: Disregarded entity
2: Limited liability
3: Self-employment tax on all income
Under which of the following circumstances must a taxpayer itemize his deductions?
1: When the taxpayer has been married for less than one year
2: When the taxpayer is married and files a separate return and the taxpayer's spouse itemizes his or her deductions
3: When the taxpayer is a nonresident alien
Angie and Patrick were married on September 1 of this year. Following a honeymoon in Hawaii, Patrick died of a heart attack. Neither Angie nor Patrick had any dependents. What filing status can Angie use this year?
Which of the following can file as a corporation or partnership?
An architect performed services for Bill and Sue and, in lieu of her normal fee, accepted a 10% interest in a partnership with a fair market value of $10,000. How much income from this arrangement should the architect report on her income tax return?
Which of the following is not an available filing status?
Aurora had the following cash inflows during the current taxable year.
1: Wages: $45,000
2: Loan Proceeds: $2,000
3: Child Support: $5,000
4: Stock Sale Proceeds: $3,000
5: U.S. Government Bond Interest: $1,000
What is her gross income for income tax purposes if her adjusted tax basis in the stock was $2,000?
An S corporation has the following information for the taxable year.
Net Income before the items below $90,000
Bill's Salary ($38,000)
Other Income $29,000
Other Expenses ($14,000)
Net Income $67,000
Bill is a 20 percent owner of the S corporation and he performs services for the business as an employee. What is Bill's self-employment income?
Which of the following is not excluded from gross income?
Which entity will meet the following requirements?
1: Availability of preferred returns for certain investors
2: Considers loans from third parties in basis of owners
3: Limited liability
At the beginning of the current year, Donna's basis in her partnership interest was $100,000. At the end of the year, Donna received a K-1 from the partnership that showed the following information.
Cash Withdrawn $31,000
Partnership Taxable Income $60,000
Charitable Contribution $1,000
What is Donna's basis in her partnership interest at year-end?
Excess distributed income over reasonable compensation:
1: is treated as self-employment income in a LLC.
2: is treated as dividend income in a S corporation.
Which of the following is not an itemized deduction from adjusted gross income?
Sam's Turbo Repair, Inc. (STR) purchased a new machine for cleaning and retooling the turbo blades on semi-trucks. The machine cost was $30,000, 10% sales tax, and $1,000 delivery and setup fee. What is STR's basis in the new machine?
Contributions to charity are limited to a certain percentage of income. How long is the carry-over period for individuals to use any excess current charitable deduction?
Isaac is a middle school teacher with gross income this year of $35,000. Based on the following, what is Isaac's adjusted gross income?
1: $4,000 qualified education interest expense
2: $2,000 alimony received
3: $1,000 contribution to a traditional IRA
4: $750 in educator expenses
Kim and Warren are both 67 years old and healthy. They are filing their tax return and want to know how many personal exemptions they may take. You correctly inform them that they can take
An architect performed services for Bill and Sue and, in lieu of her normal fee, accepted a 10% interest in a partnership with a fair market value of $10,000. How much income from this arrangement should the architect report on her income tax return
Which of the following statements is true regarding refundable tax credits

On August 1, 2008, Jack bought a 5 percent interest (5 shares) in XYZ, an S corporation that files as a calendar-year taxpayer. In 2008, the S corporation income was $160,000. How much will be reported to Jack on his 1120S K-1?
At the beginning of the current year, Donna’s basis in her partnership interest was $100,000. At the end of the year, Donna received a K-1 from the partnership that showed the following information: Cash Withdrawn $31,000 Partnership Taxable Income $60,000 Charitable Contribution $1,000 What is Donna’s basis in her partnership interest at year-end?
Which of the following statements is/are true? 1. It is necessary to register with the state when forming a proprietorship. 2. It is necessary to register with the state when forming a partnership.
Which entity does not have all of the following characteristics? 1. Limited liability. 2. Ability to distribute in-kind appreciated assets to owners without gain recognition. 3. Can have foreign investors
Which type of entity could possibly file any of the following forms? 1. Can file Form 1040. 2. Can file Form 1065. 3. Can file Form 1120S
Which entity will meet the following requirements? 1. Unlimited number of owners. 2. Limited liability. 3. Self-employment tax on all income.

Which of the following can file as a corporation or partnership? a. LLC and LLP. b. LLC only. c. LLP only. d. LLC and S corporation

Liberty University BUSI 352 quiz 5 solutions answers right

Liberty University BUSI 352 quiz 5 solutions answers right
How many versions: four different versions

Question 1 An investor purchased a bond for $980, received $75 in interest, and then sold the bond for $950 after holding it for seven months. What is the holding period return?
Question 2 The risk which a firm may not be able to meets its debt obligations is known as:
Question 3 Cathy and her twin sister Carley, both age 25, each believe they have the superior savings plan. Cathy saved $5,000 at the end of each year for ten years then let her money grow for 30 years. Carley on the other hand waited 10 years then began saving $5,000 at the end of each year for 30 years. They both earned 9% on their investment and are 65 years old today and ready to retire. Which of the following statements is correct?
Question 4 The type of risk which measures the extent to which a firm uses debt securities and other forms of debt in its capital structure to finance is known as:
Question 5 The type of risk which cannot be eliminated through diversification is:
Question 6 Michael has an investment with the following annual returns for four years. Year 1: 12% Year 2: ­5% Year 3: 8% Year 4: 18% What is the arithmetic mean (AM) and what is the geometric mean (GM)?
Question 7 Which of the following statements regarding investment risk is correct? 1: Beta is a measure of systematic, non­diversifiable risk. 2: Rational investors will form portfolios and eliminate systematic risk. 3: Rational investors will form portfolios and eliminate unsystematic risk. 4: Systematic risk is the relevant risk for a well­diversified portfolio. 5: Beta captures all the risk inherent in an individual security.
Question 8 Sylvia has two assets in her portfolio, asset A and asset B. Asset A has a standard deviation of 40% and asset B has a standard deviation of 20%. 50% of her portfolio is invested in asset A and 50% is invested in asset B. The correlation for asset A and asset B is 0.90. What is the standard deviation of her portfolio?
Question 9 Municipal bonds that are backed by the income from specific projects are known as:
Question 10 Mutual fund XYZ has a beta of 1.5, a standard deviation of 12%, and a correlation to the S&P 500 of 0.80. How much return of fund XYZ is due to the S&P 500?
Question 11 Which factors may affect an individual’s retirement plan? 1: Work life expectancy 2: Retirement life expectancy 3: Savings rate 4: Investment returns 5: Inflation
Question 12 Tyrone, age 25, expects to retire at age 60. He expects to live until age 90. He anticipates needing $45,000 per year in today’s dollars during retirement. Tyrone can earn a 12% rate of return and he expects inflation to be 4%. How much must Tyrone save, at the beginning of each year, to meet his retirement goal?
Question 13 Which of the following would be considered a systematic risk?
Question 14 The following investment return will result in what dollar weighted return? An initial outlay of $50,000, with three years of additional outflows of $10,000 each, and inflows as follows: $0 the first year, $20,000 in years 2 and 3, and sale of the property at the end of year 3 for $75,000.
Question 15 What is the weighted average beta of the following portfolio? Stock L has a beta of 1.45 and constitutes 10% of the portfolio; Stock M has a value of $125,000, with a beta of 0.93; While Stock N makes up 40% of the portfolio with a beta of 0.65, and Stock O, with a 2.2 beta has a dollar value of $175,000.

Lisa Cooper recently came to your office for her second appointment after receiving her engagement letter. What is the next step?
Your client, Jed, engaged you to help him with his financial situation. You sold a life insurance policy- what part of planning are you in?
Which part of financial planning do you prepare financial statements?
Reverend Lola Pack, came in to your office. How do you greet her?
Steve Stein, a CFP... which of his actions are inappropriate?
Which of the following is least likely to be obtained from your client?
The most important quality a CPF brings to the relationship is:
Which credential is the oldest and best known?
Which of the following is considered to be a counseling paradigm or school of thought?
Which are consistent with the Humanistic paradigm?
Which of the following is NOT a premise in traditional finance?
Which of the following are important in nonverbal communication and behavior?
Which of the following is not true is communicating with a client?
Which of the following are components are passive listening?
Which of the following are NOT components of active listening?
Which of the following theories or equations are used in traditional finance?
Which of the following investors would apply in the realm of behavioral finance?
Which of the following is NOT a basic premise in behavioral finance?
Which of the following are NOT heuristics or cognitive biases discussed?
Which is true?
Which schools of thought for counseling could an advisor combine?
Which of the following choices are false as to open or closed questions?
Which of the following are true about "why " questions?
1: tempting and may help understand the client's motives, the why question may be ill-advised because it could have limited benefit for the client
2: a why question could place the client in a position of having to justify what was done, and that could put the client in a defensive posture
Which of the following is the best choice for behavioral finance?
You have been working with Brenda for 3 months. You have developed a mission statement, goals and objective and now you're constructing a plan. Which approach to financial planning are you using?
During your work with your new client, you created picture representations of how he spends his money. Which approach are you using?
Rachel is 30 and single. She is healthy, has no children and works earning $40k. All of the following are likely insurance coverage needs, except?
David, 33, and Kristine, 34 are married. Which of the following is a likely goal?
Paul & Lucy Martin (65)- which of the following is their most important need/goal?
Curtis is 60. Which phase of the life cycle is he in?
Your new client, Kari, age 35 came into today. What are you likely to say?
Darrin and Kathi are 44. What statement are you likely to make during your next meeting?
Which of the following is true?
Ronnie is 55, divorced with 2 kids. Which is true?
Natalie & Brian visited your office today. They are in their early 30's with 2 kids and one on the way. Which is true?
Utilizing investment assets to gross pay benchmarks, which of the following individuals is likely on target with their investment assets?
You currently manage Cody's investment portfolio. Which is correct?
Utilizing the three panel approach, which of the following would be evaluated in Panel 1- Risk management?
Robin met with you recently to make changes to her insurance needs. Which of these recommendations will have a positive cash flow impact from an insurance perspective?
CJ bought the following assets this year- which would be considered "bad debt"?
Adriana is an analyst at High Tech Hedge, where she earns $150k with a bonus of $50k. What is her savings rate this year?
Candice/Janice earns $85k working as an admin assistant in NY. What is her savings rate?
Mark and Caren are 36 years old and plan on retiring at age 62. The currently earn $250,000 a year and expect to need $200,000 in retirement. What should they do?
Jack and Jill are 41 and plan on retiring at 65 and living until 95. What should they do?
Your client, Tom, asked you to prepare his financial statements. Him & his wife have a disagreement- which statement will help them resolve this?
Your client, Meg, asked you several questions about her balance sheet. Which is true?
Craig's financial planner is preparing his balance sheet. Which would not be considered "cash and cash equivalent"?
Craig's financial planner is preparing his balance sheet. Which would be considered an investment asset?
Which of the following statements concerning the valuation of assets on the balance sheet is correct?
Which of the following would not generally be considered a short-term liability?
Jay purchased a new home for $100,000. He put $20,000 down and financed $80,000 balance. What is the impact on his net worth?
Nathan & Evan (brothers) are joint property owners. Nathan owns 60, Evan owns 40. How is this property owned?
Which of the following property ownership regimes has right of survivorship feature?
Which of the following statements concerning income and expenses listed on the income statement is correct?
A financial planner is currently preparing a client's cash flow statements. Which of the following would be classified as a financing activity?
A client, Marie, age 35 came in today. When considering the targeted benchmarks, which of the following statements is the planner most likely to make?
Roget and Julie are married. Roger is a police officer and earns $50k. What is their total savings rate?
While meeting with your new client about retirement needs, you have made several assumptions. You engage is the process of changing some to see the impact on the plan. What is this process called?
Steve and his wife Christine recently opened an investment account with the intention of saving enough to purchase a house. How much do they need to put in to reach their goal?
Jordan invested $12,500 to help her friend Dylan start his own cooking school 5 years ago. What is the amount of the check Dylan has for Jordan today?
Colleen's grandfather set up a savings account for her with a $25,000 gift when she was first bone. To date, how much has accumulated?
DRI Enterprises needs to have a lump-sum deposit of $200,000 for the purchase of a surety bond in 6 months. How much will they need to deposit?
Claire just won the lottery and has been told that she can either accept annual payments at the beginning of each year for 20 years of a lump sum. What amount would the lump-sum be?
Mark and Sonya would like to have the opportunity to buy a home in the next five years. What amount can you tell them that they will have for a down payment when they are ready?
Alberto saved enough tip money from working at the casino to place $125,500 in an investment account. How many months will Alberto have this income coming to him?
David purchased stock 15 years ago for $325.75 and sold the stock today for $2,500. What is the average annual compound rate of return that David realized on this stock?
Kelly has asked her accountant, Darla, to determine whether her company, Gaggin Industries, should purchase a new machine for $155,000 that can be sold for $125,000 in 5 years. What will Darla tell her?
Donna plans to save for a vacation to Costa Rica in 18 months. She will be putting money into a short-term investment account. How much will she have to put away each month?
Liam bought a piece of equipment for $10,000. He paid $3,000 for upgrades during year 1... what is his IRR?
With interest rates at 4.875% for a 30-year fixed mortgage, Dan, age 48, plans to buy a house for $825,000. What will his monthly mortgage payment be for principal and interest?
Bobby bought a house for $275,000 by putting 15% down and borrowing the balance. How much interest will he pay this year?
Bobby bought a house for $275,000 by putting 15% down and borrowing the balance. How much principal did he pay in the current year?
Cindy won the california lottery. She can take single lump-sum payments or payments for 25 years. What rate of return would Cindy need to break even?
Danny buys a house for $500,000 putting 20% down. His loan is for 30 months. How much is his normal payment?
Frank and Stephanie have an 18 year old son who is going to college this year. What lump-sum amount must they deposit today to pay for his education?
In 5 years, Joe wants to buy a boat that costs $75,000 in today's dollars. What will his serial payment at the end of the second year be?
Which of the following statements concerning educational tax credits and savings opportunities is correct?
Mitch and Jennifer have AGI of $125,000 and have not planned for children's education. Which is the most appropriate recommendation?
Tan & Chia are contemplating making a contribution to their grandchildren's education fund. They are both retired. Which technique would you recommend?
Al of the following statements are true, except?
Which of the following types of aid are not needs based?
The following type of financial aid is rewarded to students with a low EFC, and funds are guaranteed to be available if a student qualifies.
Roshan is a freshman at Florida State University where tuition is $4,000. His sister is a graduate student at another university where tuition is $25,000. What is the maximum tax credit his parents can take?
What is one of the primary differences between a Coverdell ESA and a 529 savings plan?
Reba has a son, Chad, a freshman at Tulane with tuition of $30,000. Her AGI is $45,000. Which of the following would you recommend?
Peter wants to save some money for his daughter Gwen's education. How much must he save at the end of each year?
Kim and Nick are planning to save for their daughter Chloe's college education. How much must they save at the end of each year, if they want to make their last savings payment at the beginning her her first year of college?
What is the PV of all college education for 5 children if the cost today is $17,000 per year?
What is the PV of the cost of college education for 4 children if the current cost is $25,000?
Using previous information, how much do the parents have to save annually at year-end through the education of the youngest child?
Lanie is a single Mom who has 3 children. How much must she save?
George has been in academia his whole career. How much should he set aside today to fund his goal for his grandchildren if he can earn a rate of 9%?
CJ is 40 and wants to retire in 25 years. How much does Edward need to save each year?
Which of the following expenditures will most likely increase during retirement?
Margaret, a 35 year old client, who earns $45,000 a year. Calculate wage-replacement ratio.
Danny would like to determine his financial needs during retirement. All of the following are expenditures he might eliminate except:
Which expenditure would you expect to decrease during Susie's retirement?
Tiffany, a self-employed dentist, currently earns $100,000 each year. What do you expect her wage replacement ratio to be at retirement?
Which factors may affect an individual's retirement plan?
Contributing $1,500 to his retirement fund at the end of each year beginning at age 18 through 50, how much does Juan have in his retirement account?
When Steve and Roslyn retire together, they wish to receive $40,000 additional income at the beginning of each year. How much will they need to have in their fund at the time of retirement?
Tyrone, Age 25, expects to retire at age 60. He expects to live until 90. How much must he save to meet his goal?
Roy & Barbara are near retirement. They have a joint life expectancy of 25 years in retirement. Calculate the total amount that needs to be in place when the begin retirement.
Cathy and her twin sister Carley, both age 25, each believe they have the superior savings plan. Which is correct?
Shelley saves $3,000 per year for 10 years. Kevin saves $3,000 a year between ages 36-65. What is the value of their accounts at 65?
Kwame and Omarosa. What is the monthly benefit amount they will receive during retirement?
Charlie would like to retire in 11 years at age 66. If he currently earns $150,000 how much does he need at retirement?
Bowie, age 52, has come to you for help in planning for retirement. How much will Bowie need to have accumulated to provide for retirement lifestyle?
Which of the following statements is false?

Margaret, a 35-year-old client who earns $45,000 a year, pays 7.65% of her gross pay in Social Security payroll taxes, and saves 8% of her annual gross income. Assume that Margaret wants to maintain her exact pre-retirement lifestyle. Calculate Margaret’s wage replacement ratio using the top-down approach (round to the nearest %) and using pre-tax dollars.
Ralf, a 40-year-old nurse who earns $80,000 a year, saves 14% of his annual gross income. Assume that Ralf wants to maintain his exact pre-retirement lifestyle. Calculate Ralf’s wage replacement ratio using the top-down approach (round to the nearest %) and using pre-tax dollars.
Danny would like to determine his financial needs during retirement. All of the following are expenditures he might eliminate in his retirement needs calculation except
Susie has the following expenditures during the current year:
EXPENSE AMOUNT 1. Health Care $800 2. Savings $4,000 3. Travel $500 4. Gifts to Grandchildren $1,000
Which of these expenditures would you expect to decrease during Susie’s retirement?
Tiffany, a self-employed dentist, currently earns $100,000 per year. Tiffany has always been a self proclaimed saver, and saves 25% per year of her Schedule C net income. Assume Tiffany paid $13,000 in Social Security taxes. Tiffany plans to pay off her home mortgage at retirement and live debt free. She currently spends $25,000 per year on her mortgage. What do you expect Tiffany’s wage replacement ratio to be at retirement based on the above information?
Contributing $1,500 to his retirement fund at the end of each year beginning at age 18 through age 50, with an average annual return of 12%, how much does Juan have in his retirement account at this time to use toward a possible early retirement?
Steve and Roslyn are retiring together today and they wish to receive $40,000 of income (in the equivalent of today’s dollars) at the beginning of each year from their portfolio. They assume inflation will be 4% and they expect to realize an after tax return of 8%. Based on life expectancies, they estimate their retirement period to be about 30 years. They want to know how much they should have in their fund today.
Roy and Barbara are near retirement. They have a joint life expectancy of 25 years in retirement. Barbara anticipates their annual income in retirement will need to increase each year at the rate of inflation, which they assume is 4%. Based on the assumption that their first year retirement need, beginning on the first day of retirement, for annual income will be $85,000, of which they have $37,500 available from other sources, and an annual after-tax rate of return of 6.5%, calculate the total amount that needs to be in place when Roy and Barbara begin their retirement.
Shelley saves $3,000 per year, for ten years, at the end of each year starting at age 26 and ending at age 35. She invests the funds in an account earning 10% annually. Shelley stops investing at age 35, but continues to earn 10% annually until she reaches the age of 65. In contrast, Kevin saves $3,000 per year at the end of the year between the ages of 36 and 65 inclusively and invests in a similar account to Shelley, earning 10% annually. What is the value of Shelley’s and Kevin’s separate accounts at age 65?
Kwame and Omarosa, both age 40, have $80,000 of combined retirement assets. They both expect to retire at the age of 65 with a life expectancy of 100 years old. They expect to earn 10% on the assets within their retirement accounts before retirement and 8% during their retirement. If they did not make any additional contributions to their account and they receive a fixed monthly annuity benefit for life, what is the monthly benefit (annuity due) amount they will receive during retirement?
Charlie would like to retire in 11 years at the age of 66. He would like to have sufficient retirement assets to allow him to withdraw 90% of his current income, less Social Security, at the beginning of each year. He expects to receive $24,000 per year from Social Security in today’s dollars. Charlie is conservative and assumes that he will only earn 9% on his investments, that inflation will be 4% per year and that he will live to be 106 years old. If Charlie currently earns $150,000, how much does he need at retirement?
Bowie, age 52, has come to you for help in planning his retirement. He works for a bank, where he earns $60,000. Bowie would like to retire at age 62. He has consistently earned 8% on his investments and inflation has averaged 3%. Assuming he is expected to live until age 95 and he has a wage replacement ratio of 80%, how much will Bowie need to have accumulated as of the day he retires to adequately provide for his retirement lifestyle?
Assuming the same facts as Question 15, approximately how much must Bowie save at the end of each year, from now until retirement, to provide him with the necessary capital balance assuming he has a zero balance today?
Utilizing the facts given in Question 15, how much more will Bowie need at retirement to have the same amount at his death as he will have (calculated in #15) at his retirement?
Utilizing the facts given in Question 15, how much more will Bowie need at retirement to have the same amount at his death with an equal purchasing power as he will have (calculated in #16) at his retirement?
Robin is planning for her retirement. She is currently 37 years old and plans to retire at age 62 and live until age 97. Robin currently earns $100,000 per year and anticipates needing 80% of her income during retirement. She anticipates Social Security will provide her with $15,000 per year at age 62, leaving her with required savings to provide $65,000 ($100,000 x 0.80 - $15,000) annually during retirement. She believes she can earn 11% on her investments and inflation will be 2% per year. How much must Robin save at the end of each year, if she wants to make her last savings payment at age 62 to meet her retirement goal?
Assume the same facts as in question 19 except that Robin would like to have the same amount in retirement savings at age 97, as she does at age 62, when she retires. How much must Robin save at the end of each year, if she wants to make her last savings payment at age 62, and maintain the original account balance needed at retirement for the entire retirement life expectancy?

Assume the same facts as in question 19 except that Robin would like to have the same purchasing power in retirement savings at age 97, as she does at age 62, when she retires. How much must Robin save at the end of each year, if she wants to make her last savings payment at age 62 to meet her retirement goal, assuming she wants to maintain the original purchasing power of her capital balance?

Liberty University BUSI 342 exam 2 test solutions answers right

Liberty University BUSI 342 exam 2 test solutions answers right
How many versions: six versions

The performance-reward linkage described in the expectancy theory of motivation refers to employees’ beliefs that working harder will lead to better performance.
According to Maslow’s need theory, an employee strives to satisfy his or her higher order needs first.
Churn tends to have a negative impact on the remaining employees in an organization.
Psychological contracts between employers and employees are similar across cultures.
Employee productivity is a tangible aspect of psychological contracts
One of the determinants of employees’ willingness to exert effort is the degree to which they value the rewards offered by an organization.
Older employees tend to have lower job satisfaction than younger employees
According to Maslow’s need theory, motivation is a goal-directed drive, and it seldom occurs in a void.
To increase employee satisfaction, the performance management systems and performance appraisal processes in organizations must be designed so they are linked to compensation increases.
The reasons key people choose to stay with an employer are always the opposite of those that compel others to quit
Recruiting is essentially an administrative function rather than a part of strategic HR planning
Internet recruiting generates high numbers of applicants and increases work for HR staff far beyond traditional recruiting methods
The group of applicants that an organization has available to it when using a particular recruiting approach, such as Internet job boards, is the applicant population
Resume mining allows HR staff to use software to extract the most promising resumes from a large database
Intensive recruiting may take the form of a vigorous recruiting campaign aimed at hiring a given number of employees.
Blogging-creates enough possible legal concerns that regulations may be implemented by the U.S. Federal Trade Commission.
Solange Allure Inc., a cosmetics company, is moving its operations from Bogalusa, Louisiana, to Seattle, Washington. Solange Allure will be changing its occupational labor market.
The term “applicant population” refers to all individuals looking for a job in a particular geographic area.
Utilizing current employee referrals of family members and friends is not ethical because it increases the risk of committing nepotism
Recruiting former employees is a way of avoiding “inbreeding” while still using an internal recruiting source.
It is legal for an employer to check a person’s Social Security number, motor vehicle records, and military records when performing a background check on an applicant.
Ernest is applying for a carpentry apprenticeship program. He must take a test involving mathematical calculations including working with fractions and geometry. This is illegal because carpentry is a manual labor job and these tests are cognitive and not job-related.
Listening responses such as mirroring and echoing may backfire for managers doing job interviews because these responses give feedback to the applicant.
Since “soft skills” are difficult to test for, and interviewing for these skills often puts women candidates at a disadvantage, the EEOC’s guidelines require that applicants be selected for quantifiable or measurable “hard skills” only
The Employee Polygraph Protection Act prohibits employers, including federal, state, and local government agencies, from using polygraphs for preemployment screening purposes.
The ADA prohibits the use of preemployment medical exams, except for drug tests, until a job has been conditionally offered.
Negligent hiring occurs when an employer becomes aware that an employee may be unfit for employment but continues to employ the person, and the person injures someone on the job.
Poor adaptation of an expatriate’s spouse and/or family to the overseas location is a major factor in the failure of expatriate assignments.
In general, the more structured a type of selection interview, the more likely it is to be statistically valid.
If employers do not use E-Verify to determine if an applicant is legally permitted to work in the U.S., the employer is considered to be in technical violation of federal law and can be audited by U.S. Immigration and Customs Enforcement
Training plans allow organizations to identify what is needed for employee performance before training begins.
In the context of active practice, spaced practice occurs when a person performs all the practice at once.
Combining pre-/post-measure with a control group is an effective training evaluation design.
Assessing organizational training needs is the execution phase of a training plan
On-the-job training can amount to no training if the trainers simply allow the trainees to learn the job on their own
For the employer, the advantages of cross training are flexibility and development
Carlene, a customer executive, arrives at the training facility of the company full of enthusiasm because she is really excited about learning how to cope with difficult customers. She has encountered a number of intransigent customers and is eager to see what “tricks” the trainers can show her. This shows that Carlene has the motivation to learn.
 “Soft” skills are critical in many instances in a business environment and can be taught
A gap analysis identifies the difference between what an individual employee knows and what the employee should know in order to perform the job satisfactorily
The most common approach for making individual analysis is to use performance appraisal data.
     1.   _____ is a goal-directed drive, and is defined as the desire within a person causing that person to act.
a.
Attention
b.
Motivation
c.
Calibre
d.
Aptitude

     2.   Which of the following theorists developed the need theory?
a.
Frederick Herzberg
b.
Lyman Porter
c.
Abraham Maslow
d.
Carl Jung

     3.   According to Maslow’s need theory, which of the following needs will a person strive to fulfill first?
a.
Physiological needs
b.
Safety and security needs
c.
Actualization needs
d.
Belonging and love needs

     4.   According to Maslow’s need theory, the highest human need is the need for:
a.
self-esteem.
b.
safety.
c.
self-actualization.
d.
love.

     5.   At Lumina Corporation, benefits for employees include an employer-sponsored insurance coverage. The medical expenses of employees are covered entirely by the company in case of any accidents. In this case, which of the following needs in Maslow’s hierarchy is the management in Lumina Corporation trying to fulfill?
a.
Physiological needs
b.
Safety and security needs
c.
Actualization needs
d.
Belonging and love needs

     6.   According to Maslow, once a person has fulfilled his or her safety needs, he would immediately proceed to fulfill his: 
a.
physiological needs.
b.
belonging needs.
c.
actualization needs.
d.
esteem needs.

     7.   Frederick Herzberg proposed the:
a.
need theory.
b.
expectancy theory.
c.
equity theory.
d.
motivation/hygiene theory.

     8.   Which of the following is considered to be a hygiene factor by the motivator/hygiene theory?
a.
Achievement
b.
Recognition
c.
Responsibility
d.
Salary

     9.   Which of the following is considered to be a motivator by the motivator/hygiene theory?
a.
Interpersonal relationships
b.
Recognition
c.
Working conditions
d.
Supervision

   10.   Which of the following is considered to be a motivator by the motivator/hygiene theory?
a.
Company policy
b.
Administration
c.
Advancement
d.
Salary

   11.   Which of the following needs of employees do motivators, described by the two-factor theory, primarily try to fulfill?
a.
Physiological needs
b.
Belonging needs
c.
Safety needs
d.
Esteem needs
   12.   According to Herzberg’s motivation/hygiene theory _____ is a hygiene factor.
a.
Advancement
b.
Recognition
c.
Responsibility
d.
Working condition

   13.   _____ is defined as the perceived fairness of what a person does compared with what the person receives.
a.
Equity
b.
Motivation
c.
Need
d.
Expectation

   14.   Which of the following is considered to be an input by the equity theory?
a.
Educational level
b.
Pay
c.
Awards
d.
Recognition

   15.   Which of the following is considered to be an outcome by the equity theory?
a.
Age
b.
Prestige
c.
Experience
d.
Productivity

   16.   A(n) _____ refers to the unwritten expectations that both employees and employers have about the nature of their work relationships.
a.
employment contract
b.
psychological contract
c.
non-compete agreement
d.
effort-performance linkage

   17.   Which of the following is an intangible item in a psychological contract?
a.
Wages
b.
Benefits
c.
Attendance
d.
Fair treatment
   18.   Which of the following is an intangible item in a psychological contract?
a.
Salary
b.
Benefits
c.
Attendance
d.
Loyalty

   19.   Which of the following is a tangible item in a psychological contract?
a.
Loyalty
b.
Nondiscriminatory treatment
c.
Job security
d.
Wages

   20.   Which of the following is used by employers to address the issue of job satisfaction among employees?
a.
The halo affect
b.
The Hawthorne effect
c.
A whistle-blower survey
d.
An attitude survey

   21.   Which of the following is a direct cost of absenteeism?
a.
Replacement for absent worker
b.
Lower productivity
c.
Replacement training
d.
Slower work pace

   22.   In which of the following cases is an employer applying the principles of positive reinforcement to curb absenteeism.
a.
He is conducting a company-wide session on the leave policy of the company.
b.
He is issuing a written warning to an employee for taking a lot of uninformed leaves of absence.
c.
He is giving cash to employees for meeting attendance standards.
d.
He is offering supportive guidance and personal counseling for employees who do not meet the attendance standards of the company.

   23.   CLASS, a newly-opened real estate agency, has twenty employees on its payroll. In June 2012, Jane and Selin, each took three days of leave of absence from work. What was the absenteeism rate of the company in June 2012?
a.
3
b.
6
c.
1
d.
2

   24.   Luminia Inc. has about five absences per 100 employees each day. Every day, it loses about 13% of its time due to absenteeism. The average percent of time lost per absent employee in the company is 34% every month. In this case, the inactivity rate of the company is _____.
a.
5%
b.
13%
c.
34%
d.
20%

   25.   The average time lost per absent employee during a specified period of time is known as the:
a.
inactivity rate.
b.
incidence rate.
c.
severity rate.
d.
compensation rate.

   26.   The number of absences per 100 employees each day is known as the:
a.
inactivity rate.
b.
incidence rate.
c.
severity rate.
d.
compensation rate.

   27.   Which of the following statements is true about turnover?
a.
It is illegal for an employer to continue to hire new employees while laying off other employees.
b.
When key individuals leave the firm, the turnover is often functional because they no longer act as a brake on the introduction of new technology and new work processes.
c.
The turnover of poor performers is considered functional.
d.
Organizations have little control over involuntary turnover.

   28.   Which of the following cases exemplifies involuntary turnover?
a.
Jane worked hard on a project for four months, but when the project got shelved, she felt demotivated and quit the company.
b.
Lisa loved her job, but quit when she noticed that a lot of employees were being laid off.
c.
Mary announced her retirement a day after her 40th birthday.
d.
Pauline was asked to leave the company due to poor performance on a project that incurred huge losses for her firm.

   29.   Which of the following exemplifies voluntary turnover?
a.
Jake a student intern at CL Corp. leaves the organization after his internship period is over.
b.
Paul, an employee of NML Corp. for five years, was fired owing to noncompliance with company policies.
c.
Karen is asked to resign by her manager due to her deteriorating performance.
d.
Gerald gets passed over for promotion twice despite being good at his job, and hence he decides to leave the organization.

   30.   A software firm plans to reduce the number of talented designers in its workforce who leave their jobs. In this case, the firm seeks to focus on _____ turnover among the designers.
a.
uncontrollable
b.
positive
c.
functional
d.
voluntary

   31.   Mark was terminated by his company because of his poor client relations skills that resulted in a major client leaving the firm for a competitor. This is an example of:
a.
involuntary turnover.
b.
positive turnover.
c.
uncontrollable turnover.
d.
dysfunctional turnover.

   32.   Alice, an efficient waitress at a moderately-priced family restaurant, consistently gets the lowest tips from customers. She announces that she is quitting to take another job at a newly-opened casino. This best exemplifies a(n) _____ turnover.
a.
functional
b.
controllable
c.
involuntary
d.
positive

   33.   Churn refers to the practice of hiring:
a.
new employees while laying off others.
b.
only those employees who have more than five years of prior experience in a similar industry.
c.
through realistic job previews.
d.
employees on a short-term contract basis.

   34.   WesternBioLabs Inc. is in the process of laying off 10% of its shipping and receiving employees. At the same time, it is hiring new hourly staff for night shifts. Which of the following terms best describes this process?
a.
Churn
b.
Licensing
c.
Takeover
d.
Franchising

   35.   50 employees of Glow Corp. quit the company in 2012. 35 of them quit on their own, while the rest were asked to leave by the company due to poor performance on the job and high absenteeism. The total number of employees in the corporation was 270 in January, 2012. The mid-year employee count was 250, and the number became 220 at the end of the year. The turnover rate at Glow Corp. in 2012 was _____.
a.
50%
b.
35%
c.
25%
d.
20%
   36.   —>
a.
50%
b.
25%
c.
4%
d.
2%
   37.   At Piaffe Products 15 employees had quit and an additional 10 were fired for poor performance in the year during 2010. The mid-year employee count was 50 for that year. Piaffe’s turnover rate for the year 2010 was _____.
a.
10%
b.
20%
c.
30%
d.
50%

   38.   Jane quit Cover Corp. without completing a high-priority project that she was handling. Due to her unavailability, the four remaining members of her team had to work overtime and they demanded adequate compensation to justify their extra hours of work. In this case, the amount subsequently paid to them best exemplifies:
a.
separation costs.
b.
vacancy costs.
c.
replacement costs.
d.
training costs.

   39.   Which of the following is a replacement cost that is caused by turnover in a company?
a.
Cost of training materials
b.
Employee referral fees
c.
Overtime paid to existing employees
d.
Time spent in an exit interview


ANS:  B                    PTS:   1                    DIF:    Easy               OBJ:   LO: 05-05
NAT:  BUSPROG: Analytic                      STA:   DISC: HRM   TOP:   Employee Turnover
KEY:  Bloom's: Comprehension

   40.   Carlos, the HR director of a large paper manufacturing company, is studying the financial costs of turnover of plant personnel at all levels. The easily calculable costs are sobering, but Carlos is also concerned about the hidden costs of turnover that generally include:
a.
missed project deadlines.
b.
co-worker coaching and salaries.
c.
the cost of pre-employment medical tests.
d.
the overtime paid to employees covering the separated employees’ jobs.

   41.   Arden Insurance’s claims processing facility has been a major employer in the town of Arbor for over 20 years, drawing mainly on workers with minimal skills and education. A large telemarketing firm is about to set up its business at Arden and it is planning to employ low-skilled workers. Which of the following statements is true in this case?
a.
As Arden and the marketing firm belong to different industries, the impact on Arden’s workforce will be minimal since workers rarely switch between industries.
b.
The trained workforce will not leave even if the telemarketing firm offers higher pay than Arden.
c.
If Arden cannot offer higher wages, it needs to make sure that its current employees are satisfied with the intangible aspects of their jobs in order to retain them.
d.
Workers in small towns tend to be loyal to their employers and hence, Arden’s current employees are likely to stay with Arden.

   42.   In the current year, many talented teachers have submitted their resignation notices in Sunnydale High School. The president of the school management board is in a fix at this attrition even when the school pays competitive wages to its teachers. In this case, which of the following is the best recommendation for the president to follow?
a.
Money is the main reason people stay in a job, so the school needs to consider how to raise salaries even higher.
b.
When pay is competitive, other job factors have more impact on turnover and need to be considered and improved.
c.
In service sector jobs, people are motivated more by the psychological aspects of the work than by tangible rewards.
d.
Teachers usually leave their jobs due to involuntary turnover, so pay is not a big factor in their retention.

   43.   _____ is an intangible reward for performance.
a.
Promotion to a new position
b.
Verbal praise from one’s supervisor
c.
A performance bonus
d.
An opportunity for training

   44.   If the compensation for a job is within _____ of the market rate, it is considered to be competitive pay.
a.
10% to 15%
b.
5% to 20%
c.
5% to 8%
d.
8% to 10%

   45.   In a(n) _____ interview, individuals are asked to identify their reasons for leaving an organization.
a.
situational
b.
feedback
c.
appraisal
d.
exit

   46.   A financial services firm conducted an attitude survey. It was found that although employees were generally satisfied with their pay, they were dissatisfied with the organization’s management style, promotion practices, and training programs. To manage these concerns, it is recommended that the director of HR:
a.
work toward finding the employees who had given the negative feedback and increase their salaries.
b.
announce the positive results of the survey, while beginning to work in private on solutions to the problems revealed in the survey.
c.
hold group meetings with employees to convey the positive and negative survey results and get suggestions for improvements.
d.
communicate the positive survey results, and argue against the negative results.

   47.   _____ is defined as the percentage of employees at the beginning of a period who remain at the end.
a.
Retention rate
b.
Turnover rate
c.
Absenteeism ratio
d.
Productivity rate

   48.   Which of the following is the first step in the process of managing retention?
a.
Measurement and assessment
b.
Management intervention
c.
Evaluation and follow up
d.
Tracking of intervention results

   49.   It is important to focus more on getting employees in their first year to stay because:
a.
those who stay for a year are more likely to extend their employment.
b.
first-year employees are the most productive in an organization.
c.
first-year employees are more knowledgeable than older employees.
d.
first-year employees are more committed to organizational goals than older employees.

   50.   How does an exit interview help in employee retention efforts?
a.
By providing managers and supervisors with information for improving company efforts to reduce employee turnover.
b.
By providing managers and supervisors with information to increase involuntary turnover
c.
By providing managers and supervisors with information to control involuntary turnover
d.
By providing managers and supervisors with information to increase the incidence rate of the company

     1.   According to Maslow’s need theory, an employee strives to satisfy his or her higher order needs first.
     2.   According to Maslow’s need theory, motivation is a goal-directed drive, and it seldom occurs in a void.
     3.   According to the two-factor theory, addressing hygiene factors in an organization ensures that employees are motivated to work harder.
     4.   According to the two-factor theory, interpersonal relationships are considered to be motivators.
     5.   According to the equity theory, the outcomes described in equity theory are always tangible.
     6.   One of the determinant of employees’ willingness to exert effort is the degree to which they value the rewards offered by an organization.
     7.   The performance-reward linkage described in the expectancy theory of motivation refers to employees’ beliefs that working harder will lead to better performance.
     8.   Psychological contracts between employers and employees are similar across cultures.
     9.   Employee productivity is a tangible aspect of psychological contracts.
   10.   Employers can address job satisfaction by regularly surveying employees.
   11.   Older employees tend to have lower job satisfaction than younger employees.
   12.   Higher unemployment rates usually mean more dissatisfied employees in the workforce.
   13.   Customer dissatisfaction is a direct cost of absenteeism.
   14.   A no-fault policy in organizations allows employees to manage their own attendance.
   15.   Severity rate is defined as the percentage of time lost to absenteeism.
   16.   Work rule violation is the most common reason for voluntary turnover.
   17.   A major reason for categorizing an employee’s departure as functional rather than dysfunctional is his/her performance level.
   18.   Functional turnover usually proves to be positive for organizations.
   19.   Churn tends to have a negative impact on the remaining employees in an organization.
   20.   Vacancy costs incurred by a company during turnover primarily include supervisory time, pay rates to prevent separations, and exit interview time.
   21.   In situations where the financial impact of turnover is insignificant, a company needs to pay greater attention to reducing force loss.
   22.   Decreased customer service is a hidden cost of turnover.
   23.   Paid orientation time is a training cost involved in turnover.
   24.   The reasons key people choose to stay with an employer are always the opposite of those that compel others to quit.
   25.   Developing skills in employees increases the likelihood that the employees would quit an organization.
   26.   Hiring has little to do with retention.
   27.   Insufficient pay is one of the reasons that lead to employee turnover.
   28.   To increase employee satisfaction, the performance management systems and performance appraisal processes in organizations must be designed so they are linked to compensation increases.
   29.   It is common for turnover to be high among newer employees during their first year.
   30.   Employees who stay for a year are more likely to extend their employment and have greater retention beyond the first year.

     1.   The process of generating a pool of qualified applicants for organizational jobs is called:
a.
requisitioning.
b.
pre-screening.
c.
recruiting.
d.
summoning.
     2.   Bryan is the recruiting specialist for an online retailing company in Missouri. He used all types of recruiting techniques available to him to fill nineteen job openings. Using these techniques, exactly nineteen applicants with the minimum qualifications were found and al the candidates accepted the job offer. Which of the following is true about this scenario?
a.
The yield ratio will be 50%.
b.
A selection process is not necessary in the given scenario.
c.
The acceptance rate in this scenario is 60%.
d.
The labor market in this area can be described as “loose.”

     3.   Which of the following would be an advantage for U.S. organizations that do not want to outsource their work overseas?
a.
Advancements in American worker productivity
b.
Rapidly rising labor costs in countries like India and China
c.
Restrictive U.S. requirements for work permits
d.
Large tax penalties that U.S. firms must pay if they outsource jobs
     4.   The _____ includes all individuals available for selection, if all possible recruitment strategies are used.
a.
labor force population
b.
external labor market
c.
recruitment pool
d.
applicant population

     5.   Priam Designs Inc. is recruiting fashion designers through LinkedIn. This recruiting mode typically provides direct access to the _____.
a.
applicant pool
b.
entire pool of eligible candidates
c.
entire labor market
d.
applicant population

     6.   Stacy, the HR manager of a bank, restricts her recruiting efforts for the post of loan officer to placing advertisements on the Web site of the American Banking Association. This will allow Stacy to determine the _____ for the job of loan officer.
a.
applicant population
b.
labor force population
c.
applicant pool
d.
entire labor market

     7.   The _____ pool consists of all persons who are actually evaluated for selection.
a.
applicant
b.
selection
c.
labor
d.
talent
     8.   Linda is the director of HR at Colette Value Inc., a large tax-preparation firm. The firm faces a dearth of tax preparers every year when the tax season approaches. Every December, Linda outsources a bulk of the recruiting process to an employment agency to recruit temporary employees before the tax season begins. However, she wants to do so without excessively limiting her final hiring decisions. Which of the following processes of recruitment should Linda carry out first hand?
a.
Advertising for recruitment over the Internet
b.
Preliminary screening of résumés
c.
Designing the employment advertisements
d.
Face-to-face interviews with finalists

     9.   Karl Graphics is conducting a vigorous recruiting campaign aimed at hiring 12 new employees within two weeks. This best exemplifies _____ recruiting.
a.
continuous
b.
emergency
c.
intensive
d.
crisis

   10.   A(n) ____ typically takes over the staff of a small business and writes the paychecks, pays the taxes, prepares and implements HR policies, and keeps all the required records for a fee.
a.
employment agency
b.
payroll vendor
c.
professional employer organization
d.
third-party employer

   11.   One advantage of leasing companies for employees is that:
a.
employers can save money on benefits.
b.
employers can hire permanent employees.
c.
it reduces total payroll costs for the employers.
d.
it exempts employers following the OSHA regulations.

   12.   Which of the following statements is true about employees of employee leasing companies?
a.
They have employment contracts and are not at-will employees.
b.
They increase the costs on benefits and HR administration on the part of the employer.
c.
They are supplied by contract to employers with jobs.
d.
They can be regarded as self-employed for IRS purposes.

   13.   Which of the following candidates have the highest probability of being rejected by a U.S. organization that practices sound HR practices and recruits nontraditional diverse workers?
a.
A middle-aged white male who is currently living in a halfway house for former drug addicts
b.
A 60-year-old woman living in an old age home.
c.
A 19-year-old man with an IQ of 92
d.
A young college-educated Danish woman without an H1 visa

   14.   Patricia, an outstanding performer, was placed at Oliver & Co. by a temporary service firm for two months. Patricia’s manager approaches Oliver & Co.’s HR Director with the request that she wants her as a regular employee. Given this scenario, which of the following statements is true?
a.
The temporary agency contract requires Oliver & Co. to pay a placement fee if Patricia is hired as a regular employee.
b.
The employers will not be liable for Patricia’s safety under OSHA regulations.
c.
Patricia will be less expensive as a regular employee than as a temporary employee because temporary employees typically receive a 40% wage premium to offset the lack of benefits.
d.
Oliver & Co. is ethically bound not to hire temporary employees provided by an agency for regular employment.

   15.   In which of the following situations would the use of temporary workers be most appropriate?
a.
A company that has a low rate of turnover among its regular employees.
b.
An employer who has received a long-term contract from the Federal government for oceanic research.
c.
A tax preparation company that mostly handles individual clients and has few business clients.
d.
A start-up company with a competitive strategy of continuing expert customer service.

   16.   Angela is a self-employed graphic artist. She is usually hired by companies for special projects that lasts from a week to six months. Angela can be best described as a(n):
a.
independent contractor.
b.
undocumented worker.
c.
regular employee.
d.
full-time employee.

   17.   Which of the following statements is true about recruiting diversity?
a.
An organization that advertises job openings for individuals with “Christian values” employees would be considered impartial.
b.
Affirmative Action Plans include hiring goals for protected classes that the employer must try to meet with its recruiting efforts.
c.
“Journeyman lineman” is a permissible term for employment advertisements.
d.
Employers demonstrate exclusive recruiting by having diverse individuals represented in company materials.

   18.   If an employer lists the designation EEO/M-F/AA/ADA in its employment advertisements, it indicates that
a.
the employer will hire only minorities and disabled persons.
b.
the company has been found liable in a discrimination lawsuit.
c.
the employer has a policy of complying with equal employment regulations.
d.
the company encourages disparity in its workforce.

   19.   Paul is the director of recruitment at Times Clockworks. After running a thorough study of their employees’ backgrounds, Paul finds that Times Clockworks has disparate impact in the proportion of Hispanic employees compared to the proportion of Hispanics in its labor market. Which of the following steps should Paul take to solve the problem most efficiently?
a.
Lower the job specifications for Hispanic applicants
b.
Begin advertising for job openings on the local Spanish radio station
c.
Continue its current recruiting practices because only organizations with Affirmative Action Plans are required to meet EEO guidelines
d.
Freeze the hiring process until qualified Hispanics apply for the position

   20.   Which of the following statements is true about good recruiting efforts?
a.
If a disparate impact exists between an employer’s workforce and the relevant labor markets, then the employer is required by law to expand its external recruiting efforts.
b.
Advertising job openings for “exercise boys” for a race track would be considered legal terminology.
c.
A salon that advertises job openings for “young and enthusiastic” employees would be considered impartial.
d.
Wording about specific designations such as EEO/M-F/AA/ADA in employment advertisements would be considered illegal.

   21.   Which of the following statements is true of good recruiting efforts?
a.
If a disparate impact exists between an employer’s workforce and the relevant labor markets, then the employer is required by law to expand its internal recruiting efforts.
b.
If a company has few Somali employees in a community with a large Somali presence, a good recruiting strategy is to have company employees who are not from Somali to help with recruiting.
c.
It would be discriminatory for a race track to advertise job openings for “exercise boys.”
d.
The Equal Employment Opportunity Commission (EEOC) guidelines state that indirect references implying gender or age are permitted.

   22.   Edison Inc., an electrical utility company, is moving from using only traditional sources of electricity to promoting the use of solar and wind power. It is one of the first utilities in the country to move heavily to solar and wind-generated electricity. Which of the following steps should the HR director take in order to cope with these new technologies at Edison Inc.?
a.
Avoid including specific designations such as EEO/M-F/AA/ADA in the job advertisements
b.
Highlight terms such as “young and enthusiastic” and “ journeyman lineman” in their official Web sites
c.
Focus on training and development to generate internal candidates for all the new positions at the utility
d.
Plan to do more extensive external recruiting for technical and engineering positions

   23.   Which of the following is a defining characteristic of regular staffing?
a.
It uses workers who are traditional employees.
b.
It uses independent contractors.
c.
Companies can utilize the “try before you buy” approach.
d.
Companies can avoid litigation associated with the termination of workers.

   24.   A passive job seeker is one who:
a.
seeks a job merely because it is a requirement of receiving unemployment compensation.
b.
conducts a haphazard and unplanned job search.
c.
has a good job and is not actively looking to change jobs.
d.
is an employed individual who is not satisfied with his or her current job.

   25.   Which of the following statements is true of job boards?
a.
Job boards enable job seekers to submit résumés to many employers simultaneously.
b.
Much of the information provided by companies on job boards is intended to mislead competitors.
c.
Applicants hired from job boards always have worse average performance levels than applicants hired via social networking media.
d.
Job boards fail to offer access to numerous candidates.

   26.   John’s Medical is recruiting for the post of an oncology nurse practitioner. It would be most effective for John’s Medical to advertise:
a.
on a microblogging site like Twitter.
b.
online recruitment videos on a general job board such as Monster.com or CareerTV.
c.
on the Web site of the oncology nurse practitioner professional organization.
d.
on a social networking site such as Facebook.

   27.   Which of the following is a feature of Internet recruiting?
a.
It requires the filing of applicant EEO reports.
b.
It requires the entire selection process to be conducted virtually.
c.
It makes global recruiting easier, but makes local recruiting complicated.
d.
It cannot be used to target specific audiences.

   28.   Which of the following statements is true of Internet recruiting?
a.
Twitter is rarely used by recruiters because of the 140-word limit.
b.
The broad reach of Internet recruiting has significantly reduced the amount of discrimination against job seekers from racial/ethnic groups because it enlarges the applicant population exponentially over traditional recruiting methods.
c.
If a recruiter checks an applicant’s Facebook account, learns that the applicant is Jewish, and then rejects the applicant, the company can be charged with an EEO discrimination complaint.
d.
An advantage of Internet recruiting is that it streamlines EEO data gathering because everyone who accesses a job Web site is considered an applicant for legal purposes.

   29.   The major saving in time generated by Internet recruiting compared with traditional recruiting is:
a.
the time taken for conducting face-to-face interviews.
b.
the time taken for communication between the applicants and the employer.
c.
the time taken by new recruits to settle in a job.
d.
the time taken by HR staff members for handling blogs, tweets, and email with applicants versus snail mail, faxes and phone calls.

   30.   Exclusive use of the Internet for recruiting can reduce the diversity of an employer’s applicant population because:
a.
it will only attract the attention of retirees who are interested in seeking new employment opportunities.
b.
individuals from lower socioeconomic groups mostly have limited access to the Internet.
c.
the use of terminology such as “young and enthusiastic” is restricted.
d.
it excludes retirees who are interested in seeking new employment opportunities.

   31.   Which of the following would be the least important topic of training for a recruiter who will conduct interviews in a university campus?
a.
EEO regulations
b.
Details of the jobs and job specifications
c.
The company’s desired image and “brand”
d.
The company’s job posting software

   32.   When compared to internal recruitment, an advantage of external recruiting is that:
a.
its selection process is more rigorous.
b.
it takes lesser time and resources.
c.
recruited employees often require more orientation efforts.
d.
it has the potential to generate larger applicant pools.

   33.   Which of the following is an example of external sources of recruitment?
a.
A veterinarian selects one of her interns as her assistant
b.
Jolene recommends her colleague to fill an open position as a sales representative at the company where Jolene works as a technician
c.
An assistant librarian is shortlisted for the post of head librarian in the same library
d.
A salon shifts from Boston to New York and employs a new cashier through internet recruitment.

   34.   Which of the following is the best way in which recruiters can easily and accurately track responses to advertisements in various media?
a.
Use only a few selected media.
b.
Ask applicants where they learned of the position.
c.
Ask applicants which media they found most effective.
d.
Use different contact names, e-mail addresses, or phone number codes in each ad.

   35.   The best criterion to analyze the effectiveness of an advertisement for applicants is to measure the:
a.
cost of the ad per applicant.
b.
total number of applicants generated by the ad.
c.
number of applicants generated by the ad who were hired.
d.
performance level of the hired applicants generated by the ad.

   36.   Peter Cullen & Associates uses a private employment agency to locate engineering staff. The company pays a fee to the employment agency every time it hires a candidate provided by the employment agency. In this this scenario, Peter Cullen & Associates is using the services of:
a.
a contingency firm.
b.
a retainer firm.
c.
a fee-for-service firm.
d.
a labor union.

   37.   There are two kinds of executive search firms; _____ firms charge a fee regardless of the success of the search.
a.
contract
b.
commission
c.
contingency
d.
retainer

   38.   There are two kinds of executive search firms; _____ firms typically charge a fee only when a candidate is hired.
a.
contract
b.
consulting
c.
contingency
d.
retainer

   39.   In the building trade, unions can best benefit employers by providing:
a.
apprenticeship programs.
b.
providing interesting “employment games” online.
c.
pre-screening for job seekers.
d.
providing competitive wage scales for jobs.

   40.   Job fairs are primarily useful for:
a.
rapid hiring of large numbers of people.
b.
maintaining a continuous presence in a local labor market.
c.
passive recruiting.
d.
keeping out unemployable applicants.

   41.   Which of the following is a feature of school and college recruiting?
a.
Vocational colleges and technical schools often have cooperative programs with employers that funnel quality students into regular jobs.
b.
College recruiting is one of the least expensive recruitment methods.
c.
Companies who target minority students before they graduate are likely to be violating EEO laws.
d.
School and college recruiting is a type of internal recruitment.

   42.   Which of the following is true of internal recruitment?
a.
Friends and family of current workers tend to be less qualified than external hires, especially if bonuses are offered to the referring employees.
b.
It has the potential to lead to EEO violations if the current workforce is not diverse.
c.
Family connections moderate the normal political maneuvering that occurs in firms.
d.
This process fails to motivate current employees to perform better.

   43.   Which of the following is true of internal recruitment?
a.
Inbreeding of employees typically result in a more diverse workforce
b.
It can aid succession planning, future promotions, and career development.
c.
Family connections moderate the normal political maneuvering that occurs in firms.
d.
This process fails to motivate current employees to perform better.

   44.   Which of the following is an advantage of internal recruitment?
a.
Inbreeding of employees typically results in a more diverse workforce.
b.
It ensures that there are no instances of infighting.
c.
Recruiting costs are comparitively lower.
d.
It eliminates the need of development programs when transfering employees into supervisory jobs.

   45.   Which of the following is a feature of job posting and bidding?
a.
It gives existing employees the first chance at job openings before external candidates are considered.
b.
Job posting reduces the threat of organizational “in breeding,” because the posting crosses divisional and departmental boundaries in the search for new talent.
c.
Job postings significantly hinder an employee’s chances of promotion within an organization.
d.
In the case of internal recruitment, job posting is not a reliable source.

   46.   Calculating the average time from contact to hire allows a firm to most accurately:
a.
calculate the cost per hire.
b.
estimate the efficiency of recruiters.
c.
calculate the “float time” in the recruiting process.
d.
target the most time-efficient recruiting sources.

   47.   A _____ is a comparison of the number of applicants at one stage of the recruiting process to the number at the next stage.
a.
progression rate
b.
yield ratio
c.
hit rate
d.
success base rate

   48.   The percentage hired from a given group of candidates is termed:
a.
the selection rate.
b.
the success base rate.
c.
the yield ratio.
d.
the acceptance rate.

   49.   The percent of applicants hired divided by the total number of applicants offered jobs is termed as:
a.
the selection rate.
b.
the success base rate.
c.
the acceptance rate.
d.
the fill rate.

   50.   What can a recruiter learn from calculating the acceptance rate?
a.
Whether recruiters can “close the deal” with top candidates
b.
The proportion of candidates who are of acceptable quality
c.
The cost effectiveness of the organization’s internal mobility
d.
The competitiveness of the organization’s salary structure

     1.   Recruiting is essentially an administrative function rather than a part of strategic HR planning.
     2.   The term “applicant population” refers to all individuals looking for a job in a particular geographic area.
     3.   The group of applicants that an organization has available to it when using a particular recruiting approach, such as Internet job boards, is the applicant population.
     4.   Santiago is the HR director of Illumin Media, a mid-sized organization. He notices that the proportion of minorities in his company’s managerial ranks is too low. To solve the issue, Illumin Media should consider recruiting methods that reach a larger applicant population of experienced managers, such as contacting professional associations.
     5.   Solange Allure Inc., a cosmetics company, is moving its operations from Bogalusa, Louisiana, to Seattle, Washington. Solange Allure will be changing its occupational labor market.
     6.   Continuous efforts to recruit offer the advantage of keeping the employer in the recruiting market.
     7.   Intensive recruiting may take the form of a vigorous recruiting campaign aimed at hiring a given number of employees.
     8.   Recruiting should be viewed as a type of organizational marketing and should be consistent with an organization’s overall presentation of its image.
     9.   Employment agencies typically have their own workforce, which they supply by contract to employers with jobs.
   10.   Rules of the U.S. Internal Revenue Service and the U.S. Department of Labor determine which workers qualify as independent contractors.
   11.   Job boards can be used for internal recruitment but not for external recruitment.
   12.   Niche job sites are more useful for recruiting applicants with specific technical skills than are general job boards.
   13.   Twitter is popular among recruiters because of the absence of any character limit.
   14.   Blogging creates enough possible legal concerns that regulations may be implemented by the U.S. Federal Trade Commission.
   15.   A disadvantage of Internet recruiting is that it generates large numbers of passive job seekers who, typically, tend to be of low-quality.
   16.   Internet recruiting generates high numbers of applicants and increases work for HR staff far beyond traditional recruiting methods.
   17.   Recruiters have completely stopped using newspaper ads as a tool for external recruitment because job seekers use the Internet almost exclusively even in smaller cities and towns.
   18.   Contingency firms charge a client a set fee whether or not the contracted search is successful.
   19.   An organization with a strong union has a higher probability of having less flexibility than a nonunion company in deciding who will be hired and where a newly hired person will be placed.
   20.   General job fairs are primarily preferred by employers who are involved in continuous efforts to recruit.
   21.   There are instances of companies that begin to attract students with capabilities while those students are in high school by encouraging them to participate in engineering internships during summers.
   22.   An automated job posting system that automatically contacts internal candidates by company e-mail is an effective method for keeping good employees from looking outside the company for advancement.
   23.   Utilizing current employee referrals of family members and friends is not ethical because it increases the risk of committing nepotism.
   24.   Rerecruiting former employees is a way of avoiding “inbreeding” while still using an internal recruiting source.
   25.   Yield ratio is a measure of the quality of job applicants.
   26.   An example of yield ratio is the proportion of applicants who accept an offer compared to the number of applicants who were interviewed at a job fair.
   27.   Acceptance rate measures not just recruiting but selection issues as well.
   28.   Résumé mining allows HR staff to use software to extract the most promising résumés from a large database.
   29.   The success base rate is a long-term measure of whether the HR function has provided productive, long-term employees for an organization.
   30.   A long-term measure of recruiting effectiveness is to compare the number of past applicants who became successful employees with the number of applicants against whom they competed for their jobs.

The process of choosing individuals with correct qualifications to fill jobs in an organization is called _____.
a.
recruitment
b.
selection
c.
job matching
d.
attrition

     2.   The purpose of selection is _____, fitting a person to the right job.
a.
placement
b.
orientation
c.
recruitment
d.
staffing

     3.   More than anything else, placement of human resources should be seen as a(n):
a.
public relations activity.
b.
operating management responsibility.
c.
matching process.
d.
marketing tool.

     4.   Lack of fit between a person and a job is most likely to result from:
a.
mistakes in evaluating the person’s KSAs.
b.
improper employee training.
c.
negligence of exit interviews.
d.
a lack of a positive company “brand” that attracts qualified applicants.

     5.   Mark is unhappy with his new job as a first line supervisor at a call center. Mark finds the job boring and longs for the end of his shift every day. He wants to apply for another job either within or outside the organization. This is an example of:
a.
a realistic job preview.
b.
burnout.
c.
negligent hiring.
d.
a poor person/job fit.

     6.   Voltra Inc. is planning to fill a number of openings for entry-level professionals. The selection process is quite extensive and includes several levels of individual interviews, panel interviews, psychological tests, and general ability tests. Much of the interview time is spent on the applicant’s philosophy of life and work. Voltra is highly concerned about:
a.
defining who is an applicant.
b.
complying with EEO and ADA requirements.
c.
person/organization fit.
d.
matching the person to the job.

     7.   Jill graduated with an MBA during a severe economic recession. She accepted a job as a trainer for a major national bank. Jill was one of the top candidates when she was hired by the bank. Three months into her job, she feels that the individual bank customers are not valued, and that the bank engages in misleading advertising. This is an example of:
a.
poor person/organization fit.
b.
a realistic job preview.
c.
negligent hiring.
d.
a snap judgment.

     8.   Ability, intelligence, and conscientiousness are all examples of:
a.
elements of job performance.
b.
selection criteria.
c.
predictors of selection criteria.
d.
soft skills.

     9.   Measurable or visible indicators of selection criteria are called:
a.
reliable estimators.
b.
predictors.
c.
realistic job previews.
d.
validators.

   10.   Mary, the recruiter for Aurora Borealis Lighting Inc., decides to hire an individual who has the ability to learn on the job. They estimate it will be two years before the new hire will be fully productive. Consequently, they are looking to hire a person who will be with the company for at least four or five years. Mary suggests that they only hire applicants who have been with their previous employers for at least two years, and who have not changed their jobs too frequently. Mary’s suggestion is an example of a:
a.
KSA.
b.
soft skill.
c.
realistic job preview.
d.
predictor of selection criteria.

   11.   In selection, validity refers to:
a.
the strength of the correlation between a test score and a predictor.
b.
the consistency with which the predictor actually tests the desired construct.
c.
the applicant achieving approximately the same score in a test-retest situation.
d.
the correlation between a predictor and job performance.

   12.   Which of the following is a feature about validity?
a.
The EEOC prefers concurrent validity over predictive validity studies of predictors.
b.
Concurrent validity studies take much longer than do predictive studies of predictors.
c.
Concurrent validity studies use the employer’s existing employees to test whether certain predictors are tied to performance levels.
d.
Both concurrent and predictive validity tests can be accurately run with as few as 15 employees.

   13.   For the last five years, the HR manager at Fresh Foods has been asking all applicants to appear for a test. The HR manager now intends to study the correlation between the test scores of those employees that were hired and their performance appraisals and promotion records, and whether they have stayed with the firm or have left. The HR manager is conducting a:
a.
content validity test.
b.
concurrent validity test.
c.
face-validity test.
d.
predictive validity test.

   14.   The _____ of a test is the extent to which a predictor repeatedly produces the same results over time.
a.
reliability
b.
test validity
c.
consistency
d.
predictability

   15.   In the _____ approach for combining predictors, a minimum cutoff score is set on each predictor, and to be considered, each minimum level must be “passed.”
a.
universal predictor
b.
compensatory
c.
multiple hurdles
d.
matching

   16.   For the position of firefighter in Redville, the physical requirements are rigorous and the selection process involves many ability tests. Mark has a hearing impairment. This impairment alone caused him to be disqualified, even though Mark passed all the other physical tests and pencil-and-paper tests that were conducted earlier. This is an example of:
a.
the compensatory approach to selection.
b.
poor person/organization fit.
c.
discrimination under the ADA.
d.
the multiple hurdles approach of combining predictors.

   17.   How does the compensatory approach combine predictors?
a.
A minimum cutoff is set on each predictor
b.
A higher score on one predictor offsets a lower score on another
c.
The highest predictor scores for all test takers is used to set an average cutoff
d.
Multiple hurdles are set to compensate for the different predictors

   18.   HR professionals are least likely to make the final hiring decisions when _____ positions are filled.
a.
clerical
b.
contract
c.
entry-level
d.
middle-management

   19.   The purpose of a _____ is to give applicants an accurate idea of the positive and negative aspects of a job so that they can more accurately evaluate the employment situation.
a.
job specification
b.
realistic job preview
c.
truth-in-hiring approach
d.
job analysis

   20.   What is the main purpose of preemployment screening?
a.
To provide a realistic job preview and discourage potential applicants who would be dissatisfied with the job
b.
To identify applicants with arrest records and convictions
c.
To determine if applicants meet the minimum qualifications for job openings
d.
To obtain information for EEO and affirmative action reports

   21.   A new Gulf Coast casino plans to hire over 1,000 employees for its new resort. The casino’s HR department requires applicants to complete an online questionnaire which is later analyzed using computer software and only those applicants who have previously worked in hotels and casinos are considered eligible for the next step in the hiring process. This is an example of a:
a.
compensatory approach to selection.
b.
realistic job preview.
c.
preemployment screening process.
d.
multiple hurdles approach to selection.

   22.   Which of the following is a fundamental purpose of an application form?
a.
It forms the basis for an organization’s EEO/affirmative action plans.
b.
It can be used as a defense in an ADA discrimination case.
c.
It is a record of an employer’s desire to hire someone for an open position.
d.
It acts as a basic employee record for applicants who are eventually hired.

   23.   _____ means that the employer or applicant has the right to terminate employment at any time with or without notice or cause (where applicable by state law).
a.
Employment-at-will
b.
Right-to-work
c.
Free agency
d.
Contingency employment

   24.   Greta is the new HR manager at a small company. The previous HR manager had kept every scrap of paper that crossed his desk during the last ten years but Greta is determined to clear out the unnecessary documents. Greta knows she should keep all applications and hiring-related documents and records _____ before they can be discarded.
a.
for one year
b.
for three years
c.
for five years
d.
for seven years

   25.   Roger, a new HR manager at Charlemagne Tools Inc., examines the application form that the company has been using for the last two years. According to the guidelines set by the EEOC and various court decisions, which of the following is an illegal question in the application form?
a.
Have you ever been convicted of a felony?
b.
Can you perform the duties of the job with accommodation?
c.
What is your driver’s license number?
d.
Who should we contact in case of emergency?

   26.   In verifying the identities and credentials of job applicants, employers must use the revised form I-9 for each employee hired and must:
a.
permit annual audits of HR records by ICE agents.
b.
send copies of all documents submitted by employees to the Immigration and Naturalization Service within 48 hours of hiring.
c.
determine whether a job applicant is a U.S. citizen, registered alien, or illegal alien, within 72 hours of hiring.
d.
contact the Department of Homeland Security within 24 hours if an illegal alien applies for a job with a government contractor in the transportation sector.

   27.   Kevin, a recent college graduate, applied for a job with a firm which provides security to high-profile individuals. During the selection process, he was given a test for visual memory. Tests such as these are classified as:
a.
psychomotor ability tests.
b.
cognitive ability tests.
c.
illegal tests that discriminate against the disabled.
d.
work sample tests.

   28.   _____ measure dexterity, hand-eye coordination, and arm-hand steadiness.
a.
Physical ability tests
b.
Work sample tests
c.
Aptitude tests
d.
Psychomotor tests

   29.   Amanda has applied for a job and has taken a number of selection tests. She has not been given a conditional job offer. Which of the following tests can she refuse to take because it will be considered illegal under the ADA?
a.
A step test for endurance
b.
An English fluency test
c.
A test to demonstrate her ability to use photo editing software
d.
An honesty test

   30.   An “in-basket” test is an example of a _____ test.
a.
psychological
b.
psychomotor
c.
work sample
d.
physical ability

   31.   A(n) _____ is a selection and development device composed of a series of evaluative exercises and tests in which candidates are evaluated by a panel of trained raters.
a.
situational judgment test
b.
assessment center
c.
panel interview
d.
work simulation

   32.   The purpose of a(n) _____ is to obtain additional information on a candidate and to clarify information gathered throughout the selection process.
a.
personality test
b.
application form
c.
selection interview
d.
polygraph

   33.   Kent and Julie are both recruiters for Sunspree Corp. When both of them interview the same applicant, they often find that they have different opinions about the applicant’s potential as a future high performer for Sunspree. Kent and Julie demonstrate:
a.
low inter-rater reliability.
b.
high inter-rater reliability.
c.
high intra-rater reliability.
d.
low intra-rater reliability.

   34.   Which of the following is true of all structured interviews?
a.
All candidates meet with the same interviewer.
b.
A set of standardized questions are asked of all job applicants.
c.
Each candidate appears before a panel of interviewers.
d.
Questions are designed to address all of the Big Five personality traits.

   35.   The great advantage of structured selection interviews over unstructured interviews is their:
a.
naturalness and ability to set the candidate at ease.
b.
effectiveness at organizational branding.
c.
consistency in evaluation of candidates.
d.
improvisational approach to gathering information about candidates.

   36.   The _____ interview is more reliable and valid than the others types of interviews.
a.
sequential
b.
nondirective
c.
stress
d.
structured

   37.   Gerard, a job applicant, was asked to appear for an interview by an organization. Gerard spent the first 15 minutes of the job interview relating details about his education and work experience to the interviewer. This is a _____ interview.
a.
behavioral
b.
competency
c.
biographical
d.
non-directive

   38.   Patrick, a job applicant, was asked by his interviewer, “In your previous job, how did you handle employees who were poor performers?” Based on this information, what type of interview did Patrick attend?
a.
Behavioral interview
b.
Biographical interview
c.
Nondirective interview
d.
Situational interview
   39.   In her interview for a position as a bartender at a luxury hotel bar, Megan was asked “What would you do if one of the customers started slurring her words and began making off-color jokes that other customers in the bar could hear?” Such types of questions are typically asked in _____ interviews.
a.
behavioral
b.
nondirective
c.
situational
d.
stress

   40.   The selection process for hiring the assistant to the mayor of a large city includes giving the finalists three hypothetical crisis scenarios. One deals with a terrorist threat at a sporting event, another deals with a plane crash at the airport, and the third deals with a major earthquake. Each candidate must describe her/his approach to handling the crisis, which will be recorded and evaluated by a panel. This is an example of a:
a.
competency interview.
b.
behavioral interview.
c.
stress interview.
d.
situational interview.

   41.   Gisela has just finished her interview with the managing editor of a large city newspaper. She is shaken and upset because the editor talked about her educational background in an insulting tone. He also pressured her to answer confusing questions without allowing her time to collect her thoughts. Given this scenario, Gisela most likely attended a _____ interview.
a.
behavioral
b.
nondirective
c.
biographical
d.
stress

   42.   Which of the following types of selection interviews is unstructured?
a.
Behavioral interview
b.
Situational interview
c.
Competency interview
d.
Nondirective interview

   43.   Anthony was interviewing an applicant to be a volunteer docent (instructor and tour guide) for a large art museum. During the course of the interview, the applicant began to discuss her interest in introducing young children to great works of art. Anthony followed up with several questions about how young children react to art, why she felt early exposure to art was important, and how she would design situations for children to experience art. Anthony was conducting a _____ interview.
a.
behavioral
b.
nondirective
c.
stress
d.
structured

   44.   The position for City Manager of Scenic River attracted many applicants. As part of the selection process, the applicants each appeared one-by-one before the entire Scenic River Board of Aldermen for an interview. This is an example of a _____ interview.
a.
panel
b.
mass
c.
biographical
d.
situational

   45.   The interior decorators, designers, and architects of WorldKraft Design work together in self-managing work groups. This structure is key to the organization’s culture, and it is important that new hires fit in with the work group to which they are assigned. In this case, it would be wise to use:
a.
multiple-hurdle interviews.
b.
stress interviews.
c.
biographical interviews.
d.
team interviews.

   46.   The problem of _____ occurs when interviewers make a decision on the job suitability of applicants within the first few minutes of the interview and spend the balance of the interview looking for evidence to support it.
a.
cultural noise
b.
snap judgment
c.
stereotyping
d.
negative emphasis

   47.   Which of the following occurs when an interviewer allows a positive characteristic about a job applicant to overshadow other evidence?
a.
Halo effect
b.
Cultural noise
c.
Similarity bias
d.
Snap judgment

   48.   Which of the following occurs when interviewers favor or select people whom they believe to be like themselves on the basis of a variety of personal factors?
a.
Halo effect
b.
Cultural noise
c.
Similarity bias
d.
First impression error
   49.   The main legal reason for performing a thorough background check of all applicants is:
a.
to comply with the Immigration and Naturalization Act.
b.
to avoid résumé fraud.
c.
to prevent discrimination against protected classes.
d.
to protect the organization against charges of negligent hiring.

   50.   A school district hired a school bus driver without conducting a multi-state criminal background check; a background check was conducted only in the state in which the school was located. Subsequently, the school bus driver was convicted of kidnapping one of the children who traveled in his bus. The prosecution in the case revealed that the driver had been convicted ten years ago for a similar case in another state. The school district is guilty of:
a.
information falsification.
b.
stereotyping.
c.
compensatory hiring.
d.
negligent hiring.
   51.   Angus has been a bus driver for a tour bus company for the last 15 years and has an excellent driving record. Last year, Angus was on medical leave for 8 weeks due to a back injury which has left him in chronic pain. If Angus has an accident while driving one of the tour buses because of the effects of his prescription pain medication and if passengers are injured, the company might be liable for:
a.
failure to conduct a thorough background check on Angus.
b.
negligent hiring.
c.
criminal negligence.
d.
negligent retention.

   52.   Which of the following statements is true about medical examinations and inquiries?
a.
A company may require applicants to take a drug test even before a conditional job offer has been made.
b.
A preemployment health checklist can be required of applicants before a job offer is made, but physical medical exams cannot be requested until a job has been conditionally offered.
c.
A drug test is considered a medical exam and cannot be administered unless a conditional job offer has been made.
d.
Companies may ask questions about an applicant’s current medical condition but not about past medical problems, even after a conditional job offer has been made.

   53.   Morgan, the best candidate for the position of director of marketing, has tested positive for the presence of illegal drugs in a hair sample. Given this scenario, the HR manager should:
a.
notify Morgan that he was denied the job because of a positive drug test.
b.
inform Morgan that someone else has been hired.
c.
hire Morgan and inform him of the company’s Employee Assistance program.
d.
ask Morgan to submit to a second type of drug test at another laboratory.

   54.   Carrie phoned an applicant’s former supervisor for a reference. The supervisor refuses to give any information about the former employee. What mistake may Carrie have made?
a.
She did not get a signed consent form from the applicant releasing the former supervisor from liability.
b.
She limited her request for information to dates of employment, positions held, and the applicant’s previous job title rather than asking for particular examples of good or poor performance.
c.
She contacted the supervisor by phone rather than in writing or via email, thus opening the supervisor to a charge of slander by the applicant.
d.
Former supervisors rarely provide useful information, so it is not an effective use of Carrie’s time to pursue this contact.

   55.   What is the main purpose of an applicant flow form?
a.
To report applicant demographic data to the EEOC
b.
To document that the employer asked each applicant to voluntarily provide demographic data
c.
To use the protected class status of individuals to make hiring decisions
d.
To collect EEO data that the applicant is required by law to provide

     1.   In selection, a predictor is a characteristic that a person must have to perform a job successfully.
     2.   Reliability is the ability of a test to produce the same results repeatedly over time.
     3.   “Aaron might not be the sharpest person I know, since his cognitive scores are pretty low. But he showed wonderful interpersonal skills with guests in our simulations. I suggest that we hire him, and give him some intense training on our desk procedures.” This is an example of the compensatory approach to combining predictors of work performance.
     4.   When operating managers are allowed to select their own staff, the effectiveness of the selection process is enhanced because the operating managers have an instinctive feel for the type of employee who would perform well in their department.
     5.   The brand of an organization is clarified and sharpened by realistic job previews that focus on both the attractive and unattractive aspects of a job.
     6.   Courts have ruled that disqualification questions that screen out potential job applicants before the individuals even fill out a job application are discriminatory.
     7.   Albert, a top-performing district manager, was fired when his employer learned that he had not graduated with an MBA as Albert had indicated on his application form two years ago. The employer’s application form contained a disclosure that falsification of application information was grounds for termination. Albert’s attorney says that the employer’s termination of Albert is illegal because application fraud is applicable only within the first year of employment with the employer. Albert’s attorney is correct.
     8.   According to the EEOC, if an applicant’s résumé voluntarily furnishes some information that cannot be legally obtained, the employer should not use that information during the selection process.
     9.   If employers do not use E-Verify to determine if an applicant is legally permitted to work in the U.S., the employer is considered to be in technical violation of federal law and can be audited by U.S. Immigration and Customs Enforcement.
   10.   Ernest is applying for a carpentry apprenticeship program. He must take a test involving mathematical calculations including working with fractions and geometry. This is illegal because carpentry is a manual labor job and these tests are cognitive and not job-related.
   11.   John has a minor hand tremor which affects his ability to write legibly. This hand tremor would most likely lower John’s score on the MacQuarie Test for Mechanical Ability and disqualify him for jobs requiring fine manual dexterity.
   12.   On the Big Five personality framework, Bob has tested as broad-minded, curious, and original, which would mean that he is extroverted.
   13.   Organizations can use honesty/integrity tests to communicate to applicants and employees alike that dishonesty will not be tolerated.
   14.   The Employee Polygraph Protection Act prohibits employers, including federal, state, and local government agencies, from using polygraphs for preemployment screening purposes.
   15.   In general, the more structured a type of selection interview, the more likely it is to be statistically valid.
   16.   In a situational interview, applicants are required to give specific examples of how they have handled a problem in the past.
   17.   A nondirective interview allows the interviewer to improvise and pursue interesting nonroutine discussions. Consequently, the nondirective interview is more likely to turn up critical information that can be compared across applicants than a prepared list of questions.
   18.   Listening responses such as mirroring and echoing may backfire for managers doing job interviews because these responses give feedback to the applicant.
   19.   Interviewers are legally allowed to ask applicants questions about their national origin and marital status.
   20.   It is legal for an employer to check a person’s Social Security number, motor vehicle records, and military records when performing a background check on an applicant.
   21.   Negligent hiring occurs when an employer becomes aware that an employee may be unfit for employment but continues to employ the person, and the person injures someone on the job.
   22.   The ADA prohibits the use of preemployment medical exams, except for drug tests, until a job has been conditionally offered.
   23.   Jennifer, the HR employee of a company, sends an offer letter to the applicant who is significantly more promising than any of the other applicants. The letter welcomes the applicant to the company, and reads, “We look forward to many years of a mutually-beneficial, productive relationship.” This language is appropriate because there is no offer of a permanent job.
   24.   The selection process for an international assignment should provide a realistic picture of the life, work, and culture to which the employee may be sent.
   25.   Poor adaptation of an expatriate’s spouse and/or family to the overseas location is a major factor in the failure of expatriate assignments.
   26.   The United States is the only country which restricts the employment of foreign nationals by requiring work permits and visas.
   27.   All U.S. EEOC regulations and laws apply to foreign-owned firms operating in the United States.
   28.   EEO laws require employers to collect data on race, sex, and other demographics about their applicants but, legally, employers are not allowed to use this information in making hiring decisions except in very limited circumstances.
   29.   Since “soft skills” are difficult to test for, and interviewing for these skills often puts women candidates at a disadvantage, the EEOC’s guidelines require that applicants be selected for quantifiable or measurable “hard skills” only.

1.     _____ provides emailployees with specific, identifiable knowledge and skills for use in their present jobs.
a.
Pre-screening
b.
Recruiting
c.
Networking
d.
Training

        2.             Henry, a trainer at a chemical company, schedules a training on handling hazardous materials for the new batch of employees in the production unit of the company. The training complies with OSHA regulations and was already provided to the other employees of the company. This best exemplifies _____ training.
a.

interpersonal
b.

required and regular
c.

emergency
d.

problem-solving

        3.             A fitness center is planning to invest in a specialized exercise equipment. This equipment is highly effective, but the club members could be injured if the equipment is not used correctly. The fitness center is sends its exercise instructors to a certified training program to learn how to use these machines correctly. This is best classified as:
a.
career training.
b.
job/technical training.
c.
problem-solving training.
d.
developmental training.

        4.             Development is distinguished from training, in that:
a.
development is broader in scope, focusing on individuals gaining new capabilities useful for both present and future jobs.
b.
EEO laws and regulations apply primarily to training, not development.
c.
training is usually provided internally whereas development takes place in external learning environments.
d.
development provides people with specific, identifiable knowledge and skills for use on their present jobs.
        5.             Which of the following statements is true of training?
a.
It is illegal to ask part-time employees to take work-related training after work.
b.
If part-time employees are required to take work-related training during their free time, they must be compensated for the time spent in training.
c.
If a part-time employee takes a college course that applies directly to his/her current job and will increase his/her performance, the employer is required to pay the employee’s tuition.
d.
An employer is required to pay part-time employees only for training they take at a work location or training facility, and not for the training through Web-based classes.

        6.             Organizations must continually train their current employees because of:
a.
the need to increase the rate of attrition.
b.
rapid technological innovation.
c.
the lack of competition from businesses in low labor cost countries.
d.
low involuntary turnover rates of U.S. employees.

        7.             Organizations in many industries create value by using the organization’s intellectual capital. This is called _____ management.
a.
intellectual
b.
knowledge
c.
intelligence
d.
creativity

        8.             Which of the following statements is true of global competitiveness?
a.
Globally, there is a decline in the supply of specialized skilled and technical workers signaling a worldwide crisis in education.
b.
For U.S. employers, the challenge related to training a globally competitive workforce has increased because of the decline in specialized skilled and technical workers.
c.
Despite its shortcomings, the U.S. educational system is generating an increasing supply of specialized skilled and technical workers.
d.
Companies that send their employees abroad should focus more on skills and technical capabilities training rather than wasting their time in preparing them for the host country’s culture.

        9.             The “emotional” component of intercultural competence is the person’s:
a.
level of sensitivity to cultural issues.
b.
ability to connect with foreigners on an emotional level.
c.
ability to handle the emotional stress of an overseas assignment.
d.
ability to take on the emotional characteristics of the culture to which he/she is assigned.

        10.           The “cognitive” component of intercultural competence is the person’s:
a.
level of sensitivity to cultural issues.
b.
ability to connect with foreigners on an emotional level.
c.
ability to handle the emotional stress of an overseas assignment.
d.
knowledge about a foreign culture.

        11.           EarthShapers Inc., a manufacturer of heavy construction equipments based in U.S.A., maintains large sales and support operations overseas. Before sending new employees to its operations in Japan, it requires the employees to take courses in Japanese history and culture so that they can adjust more easily to living in Japan. This training focuses on the _____ component of international competence training.
a.
cognitive
b.
conceptual
c.
emotional
d.
behavioral

        12.           The planned introduction of new employees to their jobs, coworkers, and the organization is referred to as _____.
a.
orientation
b.
organizational entry
c.
socialization
d.
indoctrination

        13.           In the _____ phase of the training process, organizational and employee performance issues are considered to determine if training can help.
a.
needs assessment
b.
implementation
c.
evaluation
d.
design

        14.           Attitude survey data are typically used in _____ analysis of training needs.
a.
individual
b.
organizational
c.
task
d.
job

        15.           The loan review department at a major regional bank has an exceptionally high turnover of both administrative assistants and analysts. Several analysts have quit within six months of taking the job. In this scenario, a(n) _____ analysis would most accurately reveal if there is a need for training in this department that would reduce the level of turnover.
a.
job/task
b.
organizational
c.
individual
d.
productivity

        16.           The most common approach for making individual analysis is to:
a.
analyze organizational outcomes.
b.
predict future organizational needs.
c.
use performance appraisal data.
d.
review the jobs involved.

        17.           Once training requirements have been identified using needs analyses, training objectives and priorities can be established by:
a.
conducting orientation programs.
b.
conducting exit interviews.
c.
conducting a “SWOT analysis.”
d.
conducting a “gap analysis.”

        18.           In the context of training, self-efficacy refers to:
a.
a person’s desire to learn training content.
b.
a trainer’s belief that the learners possess the basic skills required to learn new tasks.
c.
the perceived ability of the instructor to transfer the knowledge to the student.
d.
a person's belief that he/she can successfully learn the training program content.

        19.           Jeanne is 54 years old. She had worked as a medical research librarian for ten years before quitting in her late forties. She wants to re-enter the workforce. However, she is worried about applying for an open position at the library she was previosly working at because of the major changes in information technology that have taken place in library management. She also feels intimidated by computers. The HR director of the library feels Jeanne is highly qualified for the position in question. Given this scenario, what would be the main barrier to her learning the job tasks?
a.
The fact that Jeanne may not have the ability to learn the library’s computer system even with training
b.
The fact that Jeanne won’t see the benefits of learning the library’s computer system
c.
Jeane’s low motivation levels as she wants to get into a new career
d.
Jeanne’s low sense of self-efficacy regarding the use of computer technology

        20.           Active practice occurs when:
a.
job-related tasks and duties are performed by trainees during training.
b.
off-the-job training is provided to new employees at a job.
c.
trainees are shown how to actively multitask.
d.
e-learning tools are used to deliver training.

        21.           At Plantsman’s Eden nursery, new workers are trained in proper techniques for planting rooted cuttings. As part of the training, each of the workers are given ten seedlings to plant. Their planting techniques are then checked by the trainer. This best exemplifies:
a.
active practice.
b.
behavior modeling.
c.
cross training.
d.
conference training.

        22.           A group of oil refinery supervisors from the U.S. attend a class on Spanish language every Thursday afternoon. Their main purpose is to use Spanish to communicate with their contractors whose primary language is Spanish. This best illustrates _____.
a.
spaced practice
b.
massed practice
c.
immediate confirmation strategy
d.
reinforcement strategy

        23.           Cole, the director of training for a manufacturer of heavy equipments, is designing a training program for new sales representatives. The sales representatives need to be able to memorize and recall the exact details from the company catalog regarding types of equipment, their functions, their appropriate and inappropriate uses, pricing, and financing packages. Cole’s training program would be most effective if he designed it based on _____ practice.
a.
computer-based
b.
spaced
c.
massed
d.
passive

        24.           The fire fighters of Lake Hogan Fire Department train constantly to keep their skills honed so that they can respond quickly to sudden changes in an emergency situation. This best exemplifies:
a.
behavioral modeling.
b.
overlearning.
c.
reinforcement and immediate confirmation.
d.
spaced practice.

        25.           The most elementary way in which people learn is _____, which involves copying someone else’s behavior.
a.
behavioral modification
b.
behavioral modeling
c.
cognitive practice
d.
positive reinforcement

        26.           Molly, a customer service representative for an insurance company, was rude to one of her customers. The customer immediately contacted Molly’s supervisor and lodged a complaint. Molly’s supervisor then reprimanded Molly and recorded the incident in her file. Molly has made a conscious effort ever since not to repeat the same mistake. This best exemplifies:
a.
the law of effect.
b.
delayed reinforcement.
c.
transfer of training.
d.
behavioral modeling.

        27.           Soltura Products Inc. has a training program for customer service representatives that tests trainees on their knowledge of company products. Every time a trainee answers a question, he/she learns whether the answer is right or wrong. This is called:
a.
behavior modeling.
b.
massed practice.
c.
immediate confirmation.
d.
active practice.

        28.           One way to aid transfer of training to job situations is to ensure that:
a.
the trainers have high levels of self-efficacy.
b.
the trainees are not troubled with follow-up exercises.
c.
the trainers focus primarily on informal training.
d.
the training mirrors the job context as much as possible.

        29.           The most common method of delivering training at all levels in an organization is:
a.
on-the-job training.
b.
cross training.
c.
web-based training.
d.
informal training.

        30.           Which of the following is true about on-the-job training (OJT)?
a.
It can disrupt regular work in an organization.
b.
It is the least flexible of all the available employee training methods.
c.
It is more expensive than classroom training.
d.
It is typically outsourced to external firms.

        31.           Which of the following is true about on-the-job training (OJT)?
a.
It is less disruptive to the work flow than other types of employee training methods.
b.
It is flexible and relevant to what employees do.
c.
It is more expensive than classroom training.
d.
It is typically outsourced to external firms.

        32.           Which of the following is a disadvantage of the on-the-job training (OJT)?
a.
Incorrect information from the supervisor can be transferred to the trainees.
b.
It is the least flexible of all the available modes of employee training.
c.
It is more expensive than classroom training.
d.
External firms are typically used for training purposes.

        33.           Dr. Smith, a veterinarian, has hired Carlos as an assistant. On Carlos’s first day at work, Dr. Smith shows him the technique of holding a cat for vaccinations. First, Dr. Smith describes the technique, and then he practically shows the process of vaccination. Later he asks Carlos to hold the cat and corrects his mistakes. This is an example of:
a.
cross-training.
b.
virtual training.
c.
simulation training.
d.
on-the-job training.

        34.           For employers, one of the advantages of cross training employees is:
a.
narrowed job jurisdictions.
b.
increased employee productivity without pay raises or bonuses.
c.
better union relations.
d.
employee development.

        35.           For the employer, the two major advantages of cross training employees are employee development and:
a.
narrowed job jurisdictions.
b.
increased employee productivity without pay raises or bonuses.
c.
better union relations.
d.
flexibility in assigning work.

        36.           Cross training occurs when:
a.
people are trained to do more than one job.
b.
the training takes place outside the employing organization.
c.
e-learning is used as the primary mode for delivering the content of a training.
d.
the training occurs through interactions and feedback among employees.

        37.           Unions view cross training unfavorably primarily because:
a.
it threatens job jurisdiction.
b.
it adds supervisory roles to part-time employees’ duties.
c.
it reduces effective wages per hour.
d.
it increases worker productivity, and thus threatens job security.

        38.           Which of the following best exemplifies cooperative training?
a.
A medical school that uses simulations where the students can perform operations without harming real patients
b.
An e-learning program on corporate leadership in which the trainee interacts with the trainer and other trainees via a blog
c.
On-the-job training in an IT firm wherein a supervisor works closely and continuously with subordinates
d.
A community college program in solar panel installation partnering with solar panel installation companies providing internships

        39.           Lifelong Learning Accounts:
a.
are similar to medical flexible spending accounts which are nontransferable when employees hop jobs.
b.
are government-sponsored job training programs.
c.
combine funds from employers and employees to be used for the employee’s education.
d.
are typically owned by the employers and not the employees.

        40.           Which of the following statements is true about e-learning?
a.
Financial service companies were among the last to use Internet training.
b.
E-learning is not flexible enough to be used for off-the job training.
c.
E-learning provides easy access to more employees than does conventional training.
d.
E-learning is relatively more expensive per trainee than conventional training methods.

        41.           Andrew is enrolled in a university course on project management. His class meets at the local community college and the instructors present their lectures from universities in other cities using two-way television. This best exemplifies:
a.
simulation training.
b.
distance learning.
c.
cross training.
d.
cooperative education.
        42.           An artificial surgical environment in which a surgeon could practice a new type of operation without harming a human being or sacrificing a laboratory animal would be called:
a.
simulation.
b.
blended learning.
c.
cross training.
d.
self-guided training.

        43.           Combining short, fast-paced, interactive computer-based lessons and teleconferencing with traditional classroom instruction and simulation is called:
a.
job shadowing.
b.
outsourcing.
c.
blended learning.
d.
cross training.

        44.           In her evaluation sheet, Theresa, a trainer in a company, gets very high ratings in the areas of class enjoyability and trainee willingness to take the program again. This evaluation best exemplifies a _____ measure.
a.
reaction-level
b.
learning-level
c.
behavior-level
d.
cognitive-level

        45.           To qualify as a tax-preparer for a seasonal job at a tax-preparation chain, Martin must answer written questions on tax terminology covered in the e-learning course provided by the company. This evaluation best exemplifies a _____ measure.
a.
results-level
b.
learning-level
c.
reaction-level
d.
behavior-level

        46.           At GetHelp Inc., after customer service representatives complete training, their phone calls are monitored to determine if the they are applying the lessons about gathering pertinent information from callers. This evaluation best exemplifies a _____ measure.
a.
reaction-level
b.
learning-level
c.
results-level
d.
behavior-level

        47.           Joshua, the director of training, must demonstrate to the top management the amount of financial benefits the company has realized from the expenditures on the mechanics training program. Joshua needs to prepare:
a.
a return-on-investment analysis.
b.
a net gain calculation.
c.
an actual versus proposed budget comparison.
d.
a results evaluation.

        48.           When using _____ to evaluate training, HR professionals in an organization, typically gather data on training and compare them to data on training at other organizations of similar size in their industry.
a.
the results approach
b.
benchmarking
c.
cost/benefit analysis
d.
return on investment analysis approach

        49.           The best way to determine if a change in performance resulted from training or from other factors is to use a control group combined with:
a.
a pre-/post-measure.
b.
a method of measuring trainee skill levels before the training takes place.
c.
a process of comparing training results with results from similar training programs in other companies.
d.
a return-on-investments calculation.

        50.           A problem with the pre-/post-measure of evaluating training is:
a.
the difficulty of constructing a good test.
b.
the difficulty of knowing whether employees were randomly assigned to the control group.
c.
being unable to act quickly during organizational emergencies.
d.
knowing if the training was responsible for any changes in performance.

        1.             “Soft” skills are critical in many instances in a business environment and can be taught.
        2.             The frequent changes to which organizations must adapt demands at present that employees be continually trained to update their capabilities.
        3.             Ideally, training should be viewed tactically rather than strategically.
        4.             A strategic mind-set leads top management to understand that training is the sole answer to most employee and organizational performance problems.
        5.             Since the U.S. culture is so widely dispersed via television, music, and the Internet, it is less necessary to conduct intercultural training for foreigners taking jobs in the U.S. than it is for U.S. nationals to receive intercultural training prior to foreign assignments.
        6.             Training plans allow organizations to identify what is needed for employee performance before training begins.
        7.             Orientation is the planned introduction of new employees to their jobs, coworkers, and the organization.
        8.             Assessing organizational training needs is the execution phase of a training plan.
        9.             The most common approach for making individual analysis is to use performance appraisal data.
        10.           A gap analysis identifies the difference between what an individual employee knows and what the employee should know in order to perform the job satisfactorily.
        11.           Carlene, a customer executive, arrives at the training facility of the company full of enthusiasm because she is really excited about learning how to cope with difficult customers. She has encountered a number of intransigent customers and is eager to see what “tricks” the trainers can show her. This shows that Carlene has the motivation to learn.
        12.           Active practice occurs when trainees perform job-related tasks and duties during training.
        13.           In the context of active practice, spaced practice occurs when a person performs all the practice at once.
        14.           The concept of reinforcement is based on the law of effect, which states that people tend to avoid repeating actions that give them a positive reward.
        15.           Immediate confirmation corrects errors that, if made and not corrected throughout the training, might establish an undesirable pattern that would need to be unlearned.
        16.           Carlene is a new usher at a performing arts center. She was paired with Joseph, an experienced usher, for her first show. Carlene observes Joseph during the show and imitates how he handles the guests in the next show. This scenario illustrates the process of behavior modeling
        17.           A year after the equine safety program was conducted in a riding stable, the volunteers remembered that they must always cross-tie the horses while they groom and saddle them. From the given data, it can be concluded that the content of the training was successfully transferred.
        18.           In contrast to informal training, which is planned, on-the-job training should occur spontaneously.
        19.           On-the-job training is by far the most commonly used form of training, because it can be smoothly integrated into the regular work flow.
        20.           On-the-job training can amount to no training if the trainers simply allow the trainees to learn the job on their own.
        21.           For the employer, the advantages of cross training are flexibility and development.
        22.           Like apprenticeships, internships are a type of cooperative training.
        23.           Simulations seek to reproduce parts of the real world so they can be experienced, manipulated, and learning can occur.
        24.           E-learning is limited in terms of accessibility compared to leadership and cultural training.
        25.           E-learning is the most appropriate mode for traininings on leadership and cultural changes.
        26.           E-learning can cause trainee anxiety.
        27.           E-learning cannot be paired with simulation.
        28.           Evaluating training at the behavioral level means measuring the effect of training on job performance through observing job performance.
        29.           If employees view e-learning tools such as an Internet game that they enjoy playing and give it a high rate for value, it can be concluded that the training has succeeded at the reaction level.

        30.           Combining pre-/post-measure with a control group is an effective training evaluation design.