One of the Most Interesting Issues with the Four-Fifths Rule

question 5

Multiple Choice

One of the most interesting issues with the four-fifths rule is that

• A)most employers find it uninterpretable.
• B)efforts to recruit minority group members reduce the percentage hired from that group.
• C)typically less than four-fifths of the applicants for a given job are minorities.
• D)numerous legal loopholes in the rule result in more discrimination than took place before its adoption.

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Definitions:

Exposure-Draft Stage

A phase in the standard-setting process where a proposed accounting standard is made public for feedback before it becomes final.

Statutory Authority

The legal power granted to an entity, often a government agency, to enact legislation, regulate, or enforce laws.

Accounting Rules

The standardized guidelines and criteria used in financial accounting and reporting to ensure transparency, consistency, and comparability of financial statements.

Securities and Exchange Commission

A U.S. government agency responsible for regulating the securities markets and protecting investors.