Use of Minimum Cutoff Scores Rather Than Top-Down Selection May

question 16

Multiple Choice

Use of minimum cutoff scores rather than top-down selection may result in:

• A)less workforce diversity.
• B)fewer qualified applicants.
• C)lower job performance.
• D)lower labor costs.

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Definitions:

Total Income

The sum of all earnings or revenues a person or company generates before any deductions.

Cash Payback Period

The time it takes for an investment to generate an amount of cash flow equal to the initial investment cost.

Annual Net Cash Flows

The amount of cash that a company generates or uses in a given year after all income and expenses are accounted for.

Average Rate of Return

A financial ratio that represents the average net profit or return expected on an investment over its lifetime, expressed as a percentage.