Hassan, a Compensation Analyst for a Large Firm, Is Completing

question 48

Multiple Choice

Hassan, a compensation analyst for a large firm, is completing a job evaluation for "Administrative Assistant." He reads a chart that identifies "high school diploma" as the 2^nd degree in the "Education" skill factor, and adds 44 into his calculation. He identifies "Making sure that work area does not present a hazard to others" as the 1^st degree in the "Safety of others" responsibility factor, and adds 5 into his calculator. What job evaluation method was used?

• A) Ordering
• B) Classification
• C) Basic factors
• D) Point method
• E) Core specification

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Definitions:

Straight Bond Value

The value of a bond that does not have any embedded options such as convertibility or callability, calculated based on its coupon payments and maturity value.

Conversion Price

The predetermined price at which convertible security, such as a convertible bond or preferred stock, can be converted into a specified amount of common stock.

Coupon

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Convertible Bond

A category of bond which allows conversion into a specific quantity of the issuer's equity at designated times throughout its lifespan, often at the choice of the person holding the bond.