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SHRM-CP PDF DEMO:
QUESTION NO: 1
The minimum number of employees that are required for an organization to complete OSHA forms is which of the following?
A. 11
B. 15
C. 10
D. 17
E. 12
Answer: A
Explanation: Organizations with up to 10 employees are not required to file OSHA forms. As a result, organizations with a minimum of 11 employees must file OSHA forms. Answer choices A, C, D, and E are incorrect because they reflect the incorrect number of employees for filing OSHA documentation.
QUESTION NO: 2
Which of the following types of deferred compensation plans, also known as a discretionary contribution plan, is considered to be best in a company that has highly variable annual profits?
A. Profitsharing
B. Cash balance
C. Money purchase
D. Target benefit
Answer: A
Explanation: A profitsharing plan, also known as a discretionary contribution plan, is considered to be best in a company that has highly variable annual profits. A money purchase plan offers employees a fixed annual percentage and thus is best in a company that has fairly consistent annual earnings. A cash balance plan is considered "portable" because employees can remove the money from the plan and convert the payment into other forms. A target benefit plan uses actuarial formulas to determine how much an employee will receive toward retirement.
QUESTION NO: 3
How long after filing with the Department of Labor are ERISA records required to be maintained?
A. 5 years
B. 4 years
C. 8 years
D. 7 years
E. 6 years
Answer: E
Explanation: Once a company has filed ERISA records with the Department of Labor, that company is required to maintain those records for a minimum of six years. Answer choices A, B, D, and E are incorrect because they do not reflect accurate federal guidelines for ERISA record keeping.
QUESTION NO: 4
Which type of medical insurance plan makes contract arrangements directly with employers?
A. health maintenance organization
B. preferred provider organization
C. feeforservice plan
D. physician hospital organization
Answer: D
Explanation: A physician hospital organization makes contract arrangements directly with employers.
In this system, physicians and hospitals act as a single entity. In a health maintenance organization
(HMO), patients are managed by a gatekeeper physician, who refers them to other medical professionals when necessary. In a preferred provider organization, patients work with a designated network of medical professionals. Feeforservice plans allow the patient to shop around for medical services, the costs of which are initially covered by the patient, who is later reimbursed.
QUESTION NO: 5
Risk is defined as Probability x ____________:
A. Avoidance
B. Prevention
C. Occurrence
D. Consequences
Answer: D
Explanation: Risk is defined as Probability x Consequences. In other words, a business must multiply the odds of something occurring by the results of that occurrence. The occurrence itself is a part of the process that leads to consequences, but it is not a direct element within the standard risk formula. The result of this formula enables a business to employ prevention or avoidance options.
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Updated: May 28, 2022