Which of the Following Is Not a Rule to Be

question 11

Multiple Choice

Which of the following is not a rule to be considered for interviewing a prospective employee?

• A) Ask only for information that you intend to use in the hiring decision.
• B) Know how you will use the information to make a decision.
• C) Obtain every piece of information about the person that is possible.
• D) Recognize that it is difficult to defend the practice of seeking information that you will not use.

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Definitions:

M&M Proposition I

A theory in corporate finance stating that in a perfect market, the value of a firm is unaffected by how it is financed, whether through debt or equity.

Equity Risk

The risk of loss associated with fluctuations in the equity market.

Capital Structure Policy

Refers to the decisions a company makes regarding the mix of long-term debt and equity financing in its capital structure.