ION Consulting Is a Small Firm That Cannot Afford to Conduct

question 42

Multiple Choice

ION Consulting is a small firm that cannot afford to conduct validity studies for the selection tools it uses.The HR director at ION plans to use a selection tool that is used by the firm's largest and most successful competitors.The decision by the HR director is most likely based on ________.

• A) utility analysis
• B) construct reliability
• C) validity generalization
• D) alternate form estimates

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Definitions:

Trading

The action or activity of buying and selling goods and services or financial instruments, often in financial markets.

Lenders

Individuals, institutions, or entities that provide funds to others with the expectation that the funds will be repaid, typically with interest.

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by the yield on government securities.

Earning Power

The ability of a business to generate net income consistently over time.