Which of the Following Tends to Have a Disproportionate Amount

question 99

Multiple Choice

Which of the following tends to have a disproportionate amount of influence on employee selection decisions?

• A) interview
• B) written test
• C) performance-simulation test
• D) work sampling method
• E) personality test

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Definitions:

Cost of Capital

A company's expense for acquiring funds and capital, calculated as a weighted average of debt and equity costs.

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity; it indicates what proportion of equity and debt the company is using to finance its assets.

Levered Firm

A company that has debt in its capital structure, showing that it finances some of its operations through borrowing.

Static Theory of Capital Structure

A theory proposing that there is an optimal capital structure for a company, balancing the benefits and costs of debt versus equity financing to maximize value.