Using the Four-Fifths Rule, If 70 Percent of White Applicants

question 33

Multiple Choice

Using the four-fifths rule, if 70 percent of White applicants are selected, then the selection proportion of any minority group should be at least ___ percent.

• A)48
• B)52
• C)56
• D)60

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Definitions:

Basic Earning Power Ratio

A financial metric that indicates how well a company's assets are generating income before the effects of taxes and financing costs.

Financial Leverage

The extent to which fixed-income securities (debt and preferred stock) are used in a firm’s capital structure. If a high percentage of a firm’s capital structure is in the form of debt and preferred stock, then the firm is said to have a high degree of financial leverage.

Tax Effects

The impact of taxation on an individual's or company's financial decisions or situations, especially regarding how investments and financial strategies are structured.

Liquidity Analysis

An examination of a company's ability to meet its short-term obligations with its current assets.