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QUESTION NO: 1
How many complaints about an employer's potential violation of FLSA rules can cause the government to step in and perform an audit of the business?
A. 2
B. 1
C. 3
D. 5
Answer: B
Explanation: It takes only one complaint about a potential FLSA violation for a government audit to occur. As a result, businesses are expected to take FLSA rules seriously, and the human resources professional must be very familiar with the rules to avoid even an unintentional violation. The other answer choices (2, 3, and 5) are all too high. By the time that many complaints arise, the audit will already be in progress or have been completed.
QUESTION NO: 2
Which of the following is defined as an attempt to improve overall business operations so that customers benefit from the process?
A. Offshoring
B. Workforce expansion
C. Reengineering
D. Divestiture
Answer: C
Explanation: Reengineering is defined as an attempt to improve overall business operations so that customers benefit from the process. Workforce expansion, as the name indicates, is an increase in employees for a business to reach certain goals. Divestiture is a business decision to eliminate a department by laying off employees or moving them to another department. Offshoring, or outsourcing, refers to a business's decision to move certain activities to another location (usually international) to reduce costs.
QUESTION NO: 3
What is the fiduciary role of the human resources professional regarding ERISA?
A. Setting up pension accounts for employees
B. Creating the rules that govern individual retirement account for employees
C. Working with organization to locate the funds for pension accounts
D. Handling and managing pension funds
E. Ensuring that the HIPAA guidelines of ERISA are observed
Answer: D
Explanation: The fiduciary role of the human resources professional regarding ERISA is primarily one of handling and managing the pension funds that the organization provides for retirement accounts.
Answer choice A is incorrect because the fiduciary role does not include setting up pension accounts for employees. (This might be another part of the human resources professional's job, but this is not the immediate fiduciary role with respect to ERISA.) Answer choice C is incorrect because the fiduciary role has nothing to do with ensuring that HIPAA guidelines are observed. Answer choice D is incorrect because human resources professional is not responsible for creating retirement account rules. And answer choice E is incorrect because the fiduciary role of the human resources professional is not necessarily one of locating the funding but rather of managing it.
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
Which of the following is NOT an essential component of an intellectual property agreement?
A. Prohibition against the hiring of current employees by employees who leave the business
B. Limitations on use of confidential information
C. Duration of confidentiality restrictions
D. Identification of confidential information
Answer: A
Explanation: An intellectual property agreement does not need to include a prohibition against the hiring of current employees by employees who leave the business. Many intellectual property agreements do contain such language, however, commonly known as a nonsolicitation clause. The other answer choices represent the essential components of an intellectual property agreement.
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Updated: May 28, 2022