Question 1 

What is the main difference between the equity and exchange philosophies of compensation?

The equity philosophy is based on available budget; the exchange philosophy is based on profit margins.

The equity philosophy is based on fairness; the exchange philosophy is based on employee value.

The equity philosophy is based on profit margins; the exchange philosophy is based on available budget.

The equity philosophy is based on employee value; the exchange philosophy is based on fairness.

The answer can be found in Section 4.4, Employee Environment.

Question 2 

Dual-career marriages, stress management, and employee outplacement are ________.

examples of an employee’s assets and liabilities

indicative of company preparation and career development strategies

career challenges that can be addressed with different programs

provisions included in a collective bargaining agreement