At Methods Corp

question 90

Multiple Choice

At Methods Corp., a maker of premium art pencils, the human resource department is evaluating its pay structure. A compensation specialist computes the compa-ratio of the designers and determines that it is 1.9. What problem is most likely to result from a compa-ratio of this size?

• A) The company may have difficulty keeping costs under control.
• B) The company may have difficulty attracting and keeping qualified employees.
• C) The company may be in violation of the Fair Labor Standards Act.
• D) The company may have misclassified these employees as exempt when they are nonexempt.
• E) The company may not have met minimum-wage requirements.

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Definitions:

Drill Bits

Cutting tools used to remove material to create holes, almost always of circular cross-section.

Taper Ratio

The ratio describing how much a tapered feature reduces in diameter over a specified length.

Taper Angle

The angle at which a tapered feature decreases in diameter from one part to another.

Undercut

A notch or small cut made in the part of an object, usually to provide clearance or space for other components.