Current Distribution Plans

question 27

Multiple Choice

Current distribution plans:

• A) place earnings in an escrow account for distribution upon termination, disability, or death
• B) create retirement funds
• C) are the fastest growing type of profit sharing plan
• D) provide a percentage of profits to be distributed quarterly or annually to employees
• E) are devised to relate short-term profitability to top management performance

Understand the significance and impact of the Consumer Price Index (CPI) on wage determination and labor market trends.

Recognize the influence of product markets and labor markets on organizational pay decisions.

Identify the legal requirements for organizations receiving federal money including prevailing wage laws (Davis-Bacon Act, Walsh-Healy Public Contracts Act).

Understand the concepts of exemption and nonexemption under the FLSA and their implications on employee compensation.

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Definitions:

Overestimated

Refers to an assessment or judgement that exceeds the actual value or importance of something.

Personality Development

The formation and development of an individual's personality through experiences, relationships, and environmental influences throughout their life.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, involving infants learning through sensory experiences and motor actions.

Concrete Operational Stage

A phase in Jean Piaget's theory of cognitive development, occurring from around 7 to 12 years old, where children gain the ability to think logically about concrete events.