The Local Police Department Gives a Detective's Test

question 15

Multiple Choice

The local police department gives a detective's test.Everyone who takes the test must have been a police officer for at least 5 years.The people taking the exam are rated from top to bottom based on their scores on that test.Then,if any detective openings are available,they are filled on the basis of whoever has the highest score.Which of the following statements best describes this practice?

• A) Tests like this are never legal in promotion decisions.
• B) Tests like this are always legal in promotion decisions.
• C) Tests like this are legal as long as the subject matter tested has some relationship to the job being applied for.
• D) Tests like this are legal as long as they are not the sole factor used in determining promotion.
• E) Tests like this are legal as long as they are the sole factor used in determining promotion.

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Definitions:

Net Present Value

A valuation method that calculates the present value of expected future cash flows minus initial investment, used to assess investment opportunities.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, under which the payments are directed to a special post office box instead of the company’s corporate address.

Money Market Securities

Short-term financial instruments, typically liquid and with high credit quality, traded in the money market involving assets like treasury bills, commercial paper, and certificates of deposit.

Collection Time

Refers to the average period it takes for a business to receive payments owed by its customers after a sale has been made.