Which of the Following Statements Is Most Correct

question 24

Multiple Choice

Which of the following statements is most correct?

• A) The bird-in-the-hand theory would predict that companies could decrease their cost of equity financing by raising their dividend payout.
• B) The clientele effect can explain why firms often change their dividend policies.
• C) One advantage of adopting a residual distribution policy (with all distributions in the form of dividends) is that it makes it easier for corporations to maintain dividend clienteles.
• D) Answers a and c are correct.
• E) None of the answers above is correct.

Understand the concept and significance of correlation in statistical analyses and validity measures in selection processes.

Grasp the various methods and standards of measuring the validity of selection tools and their application in HR practices.

Recognize the legal considerations and ethical standards involved in the employment selection process.

Appreciate the importance of content, criterion-related, and construct validity in the context of job performance.

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Definitions:

Rational-basis Test

A standard of review used by courts to evaluate the constitutionality of a statute, requiring that the law be rationally related to a legitimate government interest.

Supremacy Clause

Article VI, Paragraph 2, of the U.S. Constitution, which states that the Constitution and all laws and treaties of the United States constitute the supreme law of the land. Thus, any state or local law that directly conflicts with the U.S. Constitution or federal laws or treaties is void.

Federal Laws

Laws enacted by the national government that apply throughout the country.

Intermediate Scrutiny

A standard of review under which a law must be necessary to achieve a substantial, or important, government interest and must be narrowly tailored to that interest.