Which of the Following Statements BEST Characterises the Current View

question 61

Multiple Choice

Which of the following statements BEST characterises the current view regarding the use of tests to predict vocational success?

• A) It is illegal to use mental ability tests to evaluate prospective employees.
• B) Employers can use any test of mental ability with prospective employees as long as the test has been shown to be reliable.
• C) Only tests designed to measure social or practical intelligence are permissible.
• D) There is controversy over the use of IQ tests in hiring employees.

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Definitions:

Market Yield

The annual income return on an investment, expressed as a percentage of the market price.

Face Value

The nominal value printed on a security or financial instrument, such as a bond or stock, at issue.

Convertible Bond

A type of corporate bond that can be converted into a predetermined number of the company's equity shares at certain times during its life, usually at the discretion of the bondholder.

Conversion Premium

The additional cost over the current price that one pays to convert a convertible security into stock.