Sample Questions
 

 

1. Which of the following statements is not correct regarding earnings per share (EPS) maximization as the primary goal of the firm?

A. EPS maximization ignores the firm's risk level

B. EPS maximization does not specify the timing or duration of expected EPS

C. EPS maximization naturally requires all earnings to be retained

D. EPS maximization is concerned with maximizing net income

2. In a company, representatives from management and workers come together to decide such matters as improving performance, working conditions, and job security. What are these groups called?

A. Democratic determination

B. Worker determination

C. Work councils

D. Democratic representation

3. Which of the following factors may influence compensation?

A. Taxation

B. Healthcare costs

C. The cost of living

D. All of the above

4. The amount of salary an individual receives in the home-country becomes the ________ when calculating compensation.

A. base salary

B. original allowance

C. non-negotiable salary

D. None of the above

5. Employee turnover rate focuses on stability of employee in the organisation.

A. True

B. False

Answers: 1 (D), 2 (C), 3 (D), 4 (A), 5 (B)

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