Compensation Management - 10

Question
What is the main objective of the promoting Discount and finance house of
India (DFHI) ?
Answer
Increasing transactions of money market assets
Question
A portfolio manager need not necessarily sell or purchase securities
separately for each client.
Answer
False
Question
During the budget 2003 - 04, Finance Minister made some announcements which
he hopes will make investors think in terms of returning to stock market :-
Answer
No capital gains tax on investment made in equity after 1/3/03 held for 1
year , Removal of income tax on dividends in the hands of receiver
Question
What is the time frame to submit a report to SEBI for acquisition
transactions arising out of firm allotment in public issues right issues
etc?
Answer
21 days
Question
Who can buy or sell securities on containing the certificate of
registration?
Answer
Underwriter , Merchant banker , Investment advisor
Question
Which company was responsible for spreading the equity culture in India ?
Answer
Reliance Industries
Question
When is the share of the target company deemed to be frequently traded
Answer
If the turnover in the preceding 6 months prior to the month in which PA is
made is m ore than 5%
Question
What are the facilities offered by NSDL?
Answer
Enable surrender and withdrawal of securities to and from the depository ,
Maintain the investor's holdings in an electronic form , Effect settlement
of securities traded on exchanges
Question
What is a Point of sale terminal?
Answer
Mechanism for collecting debit card payments
Question
What must be the quality of a good portfolio manager?
Answer
Sound General knowledge , Analytical ability and marketing skills ,
Experience
Question
SEBI can investigate and inspect books of accounts and records of insiders.
Answer
True
Question
The depository can legally transfer beneficial ownership.
Answer
True
Question
The issue price for placement portion and net offer to public are not the
same.
Answer
False
Question
What is Discretionary Portfolio management service ?
Answer
Client gives his money for investment to the portfolio manager and leaves it
to him to make all the investment decisions.
Question
In case of a public issue by a listed company participation by promoters in
the proposed issues in excess of the required minimum percentage shall also
be looked in for a period of ________.
Answer
1 year
Question
RBI has permitted all commercial banks, financial institutions and large
corporates to issue certificate of deposits.
Answer
False
Match The Following
Question
Correct Answer
Your Answer

Charge card
Form of plastic money
Form of plastic money

Warning Bulletin
Authenticity test
Authenticity test

Credit information company
SBI, HDFC bank
SBI, HDFC bank

Credit card issuing company
Visa/Master Card
Visa/Master Card



Multiple Choice Single Answer
Question
A worker produces 50 units a week of 06 days and piece rate is Rs.2/- per
piece. Then his earning will be :-
Answer
Rs.100/-
Question
Work study department is engaged in activities like determining :-
Answer
Standard procedure
Question
Better production planning & control is facilitated through :-
Answer
Job cards.
Question
If an employee pays fees for attending some management course, the fees can
be allowed for deduction from salary income.
Answer
False
Question
For adequate and effective internal check on disbursement of wages, these
factors are important :-
Answer
Proper time recording , Proper record of output by workers , Well-defined
terms of remuneration and incentive schemes
Question
Correct Answer
Your Answer

Good compensation system
Avoid exploitation
Higher skills

High demand & Low supply
High compensation
Long working hours

Equal work
Equal pay
Equal pay

Unskilled worker
Lower compensation
Lower compensation



Multiple Choice Single Answer
Question
Indirect compensation mainly acts as :-
Answer
Maintenance factor
Question
In graduated time rates system, if basic salary is Rs.2000 and dearness
allowance is 150% then total remuneration will be :-
Answer
Rs.5000/-
Question
Source documents for preparations of wages are :-
Answer
Daily time sheet , Weekly time sheet. , Attendance register.
Question
Wages of inspector at a particular point of production comes under :-
Answer
Direct labour cost.
Question
Production bonus is calculated on the basis of output norms decided through
:-
Answer
Job analysis , Time studies
Question
Profit sharing, as an incentive plan, realizes these advantages :-
Answer
Higher profits , Increased efficiency , Climate for better employee
relations
Question
________ is financial / quantitative statement prepared & approved prior to
a period of time.
Answer
Budget
Question
Correct Answer
Your Answer

Idle time due to tea breaks
Direct costs
Direct costs

Basic Salary
Gross Earning
Gross Earning

Professional Tax
Deductions
Deductions

Overtime due to general pressure of work
Indirect costs.
Indirect costs.



True/False
Question
Indirect labour cost are distributed on a basis of suitable proportion.
Answer
True
Question
If the rent paid by employee for his accommodation is equal to or more than
the value of rent-free house, the value of the concession in rent is 'NIL'.
Answer
True
Question
________ provides benefits at the time of retirement/ death / following
disability of worker.
Answer
Deferred plan
Question
Equal remuneration Act, 1976 discriminates on the ground of sex against
women in the matter of employment.
Answer
False
Question
By using straight piece rate system of compensation output :-
Answer
Increases
Question
Gradewise flat allowances are also being considered generally except where
tax exemption benefit are still available.
Answer
True
Question
Incentive schemes should be installed right from beginning of production.
Answer
False
Question
Wage differentials have been classified into ________ categories.
Answer
3
Question
________ refers to compensation programmes that allow employees to choose
the type and quantity of reward desired by him during the year.
Answer
Cafeteria style compensation
Question
Demerits of time rate system at ordinary level are :-
Answer
No distinction between efficient and inefficient workers at regards output ,
Increase the cost of production in case of low productivity
Question
Employees are paid incentives on 'Time' basis if :-
Answer
Units of output are difficult to measure , Delays in work are frequent ,
Quality is prime consideration
Question
Economic system does result in the concentration of wealth.
Answer
False
Question
With about 2-5 years of experience, an employee can move upto manager level
from executive level in IT industry.
Answer
True
Question
Salary is still the only or chief motivator for IT employees.
Answer
False
Question
Group incentive system is more widely prevalent in the Indian industry than
the system of individual incentive.
Answer
True
Question
To minimize disparity in wages & levels, following act is passed :-
Answer
Minimum wages Act
Question
Provident Funds can be of the following types :-
Answer
Statutory Provident Fund , Recognised Provident Fund , Public Provident Fund

Question
Prevailing market rate is also known as :-
Answer
Comparable wage
Question
Carpenters engaged in cutting of wood in a furniture making shop is an
example of :-
Answer
Direct labour
Question
During the research it was found that in certain cities prevailing wage rate
are ________where as organizational ability to pay is more.
Answer
Very low
Question
Documents used for wage analysis are :-
Answer
Job cards , Wage sheets
Question
The contemporary practice for enhancing organizational growth involves
focuses on internal and external factors such as :-
Answer
Customer needs , Market trends , Costs
Question
For higher management, ________ are influenced by the size of a company,
specific industry and the process of decision making.
Answer
Salaries
Question
Cost of time spent on conducting interviews & selecting a candidate for
________ is called Replacement cost.
Answer
Replacement
Question
Job cluster is defined as the stable group of :-
Answer
Job Classification
Question
If the idle time is controllable and normal, its cost is treated as ________
cost.
Answer
Indirect
Question
Overtime payment given to the worker for completing work before scheduled
date art the instruction of buyer is treated as ________ cost
Answer
Direct
Question
Differential piece rate system is suitable where :-
Answer
Fixed costs are higher in proportion to veriable cost , It is possible to
count production accurately , There are standardised methods of production
Question
The approach of managerial / executive staff towards the perquisites has
changed since last :-
Answer
10 years , 9 years , 8 years
Question
Casual workers comes under ________ class of workers.
Answer
Unskilled
Question
Monetary incentive plans result in :-
Answer
Greater output per man-hour , Lower unit cost , Higher wages
Question
Payment is done on the basis of units of output, incase of ________ workers.
Answer
Piece
Question
If classification system is used, the jobs are already categorized into
grade or :-
Answer
Class
Question
The approach of managerial / executive staff towards the perquisites has
changed since last :-
Answer
8 years , 10 years , 9 years
Question
According to the thinking and beliefs of these young persons, the major need
filled by marriage is biological and this can be easily satisfied out of :-
Answer
Wedlock
Question
At germination stage, to attract and retain talent, dotcom companies offer :
Answer
Stock option
Question
In Payroll process, a Journal entry is treated as Control entry to :-
Answer
Book deductions effected during the month , Book expenses for the month on
account of payroll , Make remittances to respective authorities
Question
When a dotcom company starts earning profits, promoters are focused on the
launch of:-
Answer
IPO