What is typically included in a "Total Rewards" package?
Options: Base salary only, Salary and benefits, Salary, benefits, and incentives, Only bonuses
Answer: Salary, benefits, and incentives
Explanation: A Total Rewards package encompasses base salary, benefits, and incentives, aiming
to cover both monetary and non-monetary rewards.
2. True or False: Basic salary is the same as take-home pay.
Answer: False
Explanation: Base salary is the fixed income before deductions. Take-home pay accounts for
taxes, retirement contributions, and other deductions.
3. Which of the following is NOT a common employee benefit?
Options: Health insurance, Stock options, Company car, Vacation homes
Answer: Vacation homes
Explanation: Health insurance, stock options, and company cars are common benefits; vacation
homes are less common.
4. What is a common characteristic of variable pay?
Options: It’s fixed, It varies based on performance, It is guaranteed monthly, It only applies to
executives
Answer: It varies based on performance
Explanation: Variable pay, such as bonuses, fluctuates based on individual or company
performance.
5. Which is generally the biggest component of CTC (Cost to Company)?
Options: Base salary, Bonus, Stock options, Health insurance
Answer: Base salary
Explanation: Base salary is usually the largest portion of an employee's CTC.
6. True or False: Higher salary always equals higher job satisfaction.
Answer: False
Explanation: Job satisfaction is influenced by factors like work-life balance, growth opportunities,
and job culture.
7. What is "gross pay"?
Options: Total pay after deductions, Total pay before deductions, Only base salary, Take-home
pay
Answer: Total pay before deductions
Explanation: Gross pay includes all earnings before any deductions.
8. Which benefit is typically provided for long-term financial security?
Options: Health insurance, Retirement fund, Gym membership, Paid time off
Answer: Retirement fund
Explanation: Retirement funds, like provident funds, are designed for long-term financial
security.
9. True or False: Employees do not need to pay tax on health insurance provided by the employer.
Answer: True (in most countries)
Explanation: Employer-provided health insurance is often tax-free for employees.
10. What is "deferred compensation"?
Options: Immediate cash payment, Payment after retirement, Extra overtime, Annual
performance bonus
Answer: Payment after retirement
Explanation: Deferred compensation is received at a later date, often upon retirement.
11. True or False: All companies offer the same benefits packages.
Answer: False
Explanation: Benefit packages vary based on the company, industry, and country.
12. Which benefit is typically aimed at health and wellness?
Options: Stock options, Flexible hours, Gym membership, Profit sharing
Answer: Gym membership
Explanation: Gym memberships support physical health and wellness.
13. True or False: Stock options are given to employees as cash incentives.
Answer: False
Explanation: Stock options allow employees to purchase company shares at a set price, not as
cash.
14. What does PTO stand for?
Options: Pay Time Out, Paid Time Off, Permanent Time Off, Personal Time Out
Answer: Paid Time Off
Explanation: PTO is a term for leave days that employees can take with pay.
15. True or False: Only executive employees receive bonuses.
Answer: False
Explanation: Bonuses can be awarded to employees at all levels based on performance or
company policies.
16. What is "vesting"?
Options: Process of receiving stocks over time, Process of receiving salary, Process of paying
taxes, Process of applying for benefits
Answer: Process of receiving stocks over time
Explanation: Vesting refers to earning stock options or retirement benefits over a set period.
17. True or False: Health insurance premiums are deducted from gross pay.
Answer: True
Explanation: Health insurance premiums are part of deductions from gross pay.
18. Which of these is NOT a common incentive?
Options: Commission, Profit sharing, Mandatory overtime, Performance bonus
Answer: Mandatory overtime
Explanation: Overtime is a work requirement, not an incentive.
19. What does "equity compensation" refer to?
Options: Salary, Health benefits, Company shares, Monthly bonus
Answer: Company shares
Explanation: Equity compensation includes stocks or shares given as part of a compensation
package.
20. True or False: Employees pay no taxes on performance bonuses.
Answer: False
Explanation: Performance bonuses are generally taxed as income.
21. What is a "cafeteria plan" in compensation?
Options: Plan with meal benefits, Flexible benefit selection, Only health benefits, Executive-only
plan
Answer: Flexible benefit selection
Explanation: A cafeteria plan allows employees to select from a range of benefits based on their
preferences.
22. True or False: Non-monetary benefits have no financial value to employees.
Answer: False
Explanation: Non-monetary benefits, like flexible work hours or gym memberships, offer indirect
financial value by enhancing quality of life.
24. True or False: Companies in all countries offer the same benefits.
Answer: False
Explanation: Benefit types and norms differ based on local laws and cultural factors.
25. What is the purpose of a "relocation allowance"?
Options: Extra monthly salary, Health insurance, Moving expenses, Flexible hours
Answer: Moving expenses
Explanation: Relocation allowances help cover costs associated with moving for work.
26. Which benefit would likely appeal to an employee’s family?
Options: Travel allowance, Retirement plan, Health insurance, Overtime pay
Answer: Health insurance
Explanation: Health insurance often covers family members, benefiting the employee’s
household.
27. True or False: Employees cannot negotiate for benefits.
Answer: False
Explanation: Employees can negotiate benefits during job offers, depending on the employer.
28. Which benefit might attract young professionals?
Options: Parental leave, Retirement benefits, Student loan repayment, Life insurance
Answer: Student loan repayment
Explanation: Young professionals may find student loan assistance particularly valuable.
29. What is “fringe benefits tax”?
Options: Tax on base salary, Tax on additional perks, Tax on overtime, Tax on equity
Answer: Tax on additional perks
Explanation: Fringe benefits tax applies to non-cash perks provided by employers, like cars or
club memberships.
30. True or False: Every employee gets the same benefits package.
Answer: False
Explanation: Benefits packages vary by level, job role, and company.
