*** PLEASE ANSWER ALL QUESTIONS ***

1. Managers should be paid

Select one:

a. on a periodic basis.

b. based on results achieved.

c. on a piece rate basis.

d. using ESOPs.

2. A pay plan that gives an employee cash or stock equal to the difference between some specified stock price and the quoted market price at some future time period is

Select one:

a. stock appreciation rights.

b. an ESOP.

c. profit sharing.

d. merit pay.

3. Which of the following statements is true about the values statement of an organization?

Select one:

a. It is used to formulate the mission statement.

b. The values contained in the statement must be quantifiable.

c. It reflects the organizations culture by identifying beliefs about what is important to the organization.

d. It focuses on long-range plans for the organization.

4. Contingent pay

Select one:

a. can only apply to individual performance.

b. is the sole source of pay an employee receives from his/her employer.

c. is always paid in stock options.

d. is received in addition to the basic wage and is dependent upon performance exceeding some performance objective.

5. Net cash flow could be used to measure performance in

Select one:

a. profit and investment centers.

b. revenue centers and profit centers.

c. cost centers and investment centers.

d. revenue centers and investment centers.

6. Division A's investment in a new project will raise the overall organization's return on investment if

Select one:

a. Division A's return on investment exceeds the return on investment of the overall organization.

b. the return on investment on the new project exceeds the target return of the overall organization.

c. the return on investment on the new project exceeds the return on investment of Division A.

d. the return on investment on the new project exceeds the overall organization's return on investment.

7. In evaluating the performance of a profit center manager, the manager

Select one:

a. should be evaluated on all costs and revenues that can be directly traced to the sub-unit.

b. and the sub-unit should be evaluated on the basis of the same costs and revenues.

c. should be evaluated on all costs and revenues that are controllable by the manager.

d. should only be evaluated on the basis of variable costs and revenues of the sub-unit.

8. On a balanced scorecard, which of the following would be most appropriate to measure financial performance?

Select one:

a. Market share

b. Investment in intellectual capital

c. Percentage of sales from new products

d. Customer retention

9. Which of the following steps in the performance reward plan model comes before the others listed?

Select one:

a. identify performance measures

b. set performance rewards

c. identify critical success factors

d. determine reward

10. The Statement of Cash Flows indicates the cash inflows and outflows from

Select one:

a. operating, investing, and sending activities.

b. investing, financing, and borrowing activities.

c. operating, investing, and financing activities.

d. merchandising, financing, and investing activities.