As a Consequence of Watson V

question 57

Multiple Choice

As a consequence of Watson v. Fort Worth Bank and Trust, employers

• A) won the right to use interviews as a selection device
• B) were told to use objective tests only in the selection process
• C) were warned that subjective selection devices such as interview must be validated
• D) none of the above

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Definitions:

Times Interest Earned Ratio

A financial metric that evaluates how well a company can cover its interest expenses with its earnings before interest and taxes.

Net Income

Net income, also known as net profit, is the total profit of a company after all revenues, costs, and expenses have been deducted.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt over a particular period.

Par Value

A nominal or face value assigned to a share of stock by the corporation's charter, different from the market value.