Jensen Co Wants to Establish a New Subsidiary in Mexico That

question 44

Multiple Choice

Jensen Co. wants to establish a new subsidiary in Mexico that will sell computers to Mexican customers and remit earnings back to the U.S. parent. The value of this project will be favorably affected if the value of the peso ____ while Jensen establishes the new subsidiary and ____ when the subsidiary starts operations.​

• A) ​depreciates; appreciates
• B) ​appreciates; appreciates
• C) ​appreciates; depreciates
• D) ​depreciates; depreciates

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Definitions:

Construct Validity

The degree to which a test measures what it claims, or purports, to be measuring.

Content Validity

The extent to which a test measures all aspects of the concept or construct it is intended to assess.

Extraversion

A personality characteristic that involves being outgoing, talkative, and energetic.

Criterion-Related Validity

The extent to which a measure is related to an outcome or criterion, assessing the practical utility of a test.