To Properly Control and Administer Employee Financial Security Benefits,human Resource

question 27

Multiple Choice

To properly control and administer employee financial security benefits,human resource departments need to:

• A)design voluntary benefits to duplicate legally required benefits
• B)worry less about reducing on-the-job accidents
• C)challenge unjustified compensation claims
• D)let the legal department worry about the legal provisions of benefits
• E)not worry about costs

---

Definitions:

Ordering Costs

Expenses incurred in placing and receiving orders for goods, including transportation, handling, and clerical costs.

Option Contract

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specified timeframe.

Futures Contract

A forward contract with the feature that gains and losses are realized each day rather than only on the settlement date.

Forward Contract

A legally binding agreement between two parties calling for the sale of an asset or product in the future at a price agreed upon today.