1. A compensation plan that compensates sales employees based on a percentage of sales is known as a: a. straight ratio plan. b. straight salary plan. c. straight bonus plan. d. straight commission plan. 2. Private pensions are subject to federal legislation under: a. Tax Equity and Fiscal Responsibility Act (TEFRA). b. Retirement Equity Act (REA). c. Consolidated Omnibus Budget Reconciliation Act (COBRA). d. Employee Retirement Income Security Act (ERISA). 3. The concept that employees should exert greater work effort if they have reason to expect it will result in a valued reward forms the basis of: a. instrumentality. b. equity theory. c. internal equity d. expectancy theory. 4. Long-term incentive plans in which rights are granted to executives to purchase shares of their company's stock at a fixed price for a fixed period of time are known as: a. stock grants. b. stock options. c. performance shares. d. restricted stocks. 5. The __mandates that employers make health care coverage, at the same rate the employer would pay, available to employees, their spouses, and their dependents on termination of employment, death, or divorce. a. Consolidated Omnibus Budget Reconciliation Act b. Health Care and Education Reconciliation Act c. Social Security Act d. Patient Protection and Affordable Care Act 6. It is the responsibility of_ to ensure that employees use protective equipment on the job. a. the Occupational Safety and Health Administration (OSHA) b. the Voluntary Protection Program (VPP) representatives c. an employer d. a manual laborer