Multiple Choice Questions 

1. Which of the following elements are required for a contract to be legally binding and enforceable? 

A. offer

B. acceptance

C. consideration

D. all of the above

2. Consideration in a contract entails __________. 

A. evidence that both parties agree to the terms as offered

B. a polite exchange of information

C. the exchange of something of value between the parties to the contract

D. none of the above 

3. Which of the following statements about written contracts is false? 

A. The law favors written contracts over oral contracts.

B. A statement on a job application blank could be construed as a written contract.

C. Written statements in employee handbooks that are unintended as contracts cannot be construed as contracts.

D. Internal job posting notices can be construed as written job contracts. 

4. Which of the following circumstances makes it less likely an oral statement about weekend work would be legally enforceable as a contract term? 

A. The statement was made in the workplace.

B. The statement is not supported by a written policy.

C. The statement was made by an organizational manager.

D. The statement was a specific one. 

5. Which of the following statements about disclaimers is false? 

A. They can appear in almost any written documents made available to job applicants or employees.

B. They can be used to limit employee rights.

C. They are never oral.

D. Their receipt by employees should be acknowledged in some formal way.

6. In order to improve the chances of winning a law suit based on "promissory estoppel," the most important point the plaintiff must demonstrate is that ____. 

A. the promise was accurate

B. the promise was made in good faith

C. the defendant reneged on the promise

D. the promise was withdrawn, resulting in a detrimental effect 

7. Which of the following is likely to be a contingency related to a job offer? 

A. satisfactory reference checks

B. job salary

C. job benefits

D. job vacation privileges 

8. Which of the following is not a choice involved in a strategic approach to job offers? 

A. determining a compelling offer the finalists will find difficult to turn down

B. deciding which short and long term pressures to respond to in an offer

C. deciding on specific pay levels that will apply to all individuals

D. determine whether there will be a "standard offer" for all finalists or whether "enhanced offers" will be possible for some finalists

9. A _____ contract provides certainty to both the new hire and the organization regarding the length of the employment relationship. 

A. variable premium

B. fixed annuity

C. fixed-term

D. latent variable 

10. Flat pay rate job offers are least appropriate for _______. 

A. situations where applicants have very dissimilar KSAOs

B. jobs with a plentiful supply of applicants

C. situations where management desires to avoid inequities in starting pay among new employees

D. jobs where applicants have KSAOs of similar quality 

11. Terms and conditions that the organization states the employee is entitled to upon departure from the organization constitute _________. 

A. pay rates

B. health benefits

C. severance packages

D. life insurance 

12. Long-term variable pay plans provide employees ownership opportunities as the value of the organization increases are applicable only in the ____. 

A. public sector

B. private sector

C. technology sector

D. none of the above 

13. Which of the following is true regarding long-term variable pay? 

A. Stock options qualify for special tax treatment for employees.

B. Small public organizations are more likely to provide stock options than large public organizations.

C. Stock options guarantee a fixed rate of return on investment.

D. None of the above

14. Studies of job seekers graduating from hotel administration and engineering programs showed that job offers involving _____ are seen more favorably. 

A. pay contingent on performance

B. pay raises based on group performance

C. a flexible benefits package

D. pay pegged to skills 

15. A _____ is a right to purchase a share of stock for a predetermined price at a later date. 

A. stock option

B. profit share

C. realized dividend

D. mutual fund 

16. A temporary pay premium added to the regular base pay of an employee to account for a temporary market escalation in pay for certain skills in extreme shortage is called a(n) ____________. 

A. hot skill premium

B. tight labor market adjustment

C. key skill premium

D. none of the above 

17. ______ prohibit current or departing employees from the unauthorized use or disclosure of information during or after employment. 

A. Non-compete agreements

B. Retainers

C. Confidentiality clauses

D. Mixed-motive contracts 

18. Non-compete agreements should be drafted in such a way that they cover ____. 

A. high-value employees

B. experienced employees

C. all employees

D. only managerial, technical, and scientific staff 

19. In using information about competitors to structure job offers, which of the following statements is not useful as a general guideline? 

A. It makes a difference who the competitors are.

B. Competitive offers should always be matched to ensure acceptance.

C. Analysis of competitive advertisements should be performed in order to have the "market information" needed to prepare effective job offers.

D. Trade associations should be consulted for competitive information whenever possible. 

20. The most sensible approach for addressing the issue of applicant truthfulness would be to ________. 

A. receive applicant information in good faith since the majority of applicants will be honest and it is not fair to inconvenience everyone with more verification because of a few "bad apples"

B. treat applicants with trust and they will respond with honesty in most cases

C. have applicants provide independent, third-party documentation of all job information provided on application blanks

D. verify the applicant information provided that is deemed most vital