Scenario 10-1 For Four Months You Have Been Employed as the Part-Time

question 57

Multiple Choice

Scenario 10-1
For four months you have been employed as the part-time HRM for TS Inc., a small Canadian aviation company. In the past, recruitment and selection rested on the shoulders of the president and, like most small companies, TS Inc. used employee referrals and an informal interview processes in selecting employees. Since you have been hired, you have guided management through several stages of the recruitment and selection process to hire an aircraft maintenance engineer. TS Inc. has used proper selection methods, such as screening, testing, and structured interviews, but is not sure about how to integrate the data from these various sources. In the past, the president relied on his gut feeling about applicants and made poor hiring decisions.
-Refer to Scenario 10-1. Currently, TS Inc. is using objective sources such as test scores to collect applicant information. What is this approach?

• A) statistical
• B) subjective
• C) biased
• D) judgmental

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Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a company's cost of capital in which each category of capital is proportionately weighted.

Corporate WACC

The weighted average cost of capital for a corporation, reflecting the cost of its equity and debt financing.

IRR

Internal Rate of Return is a metric used in financial analysis to estimate the profitability of potential investments, representing the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Project Risk

The potential for encountering unknown or unforeseen factors that can lead to project failure, such as cost overruns, delays, and scope creep.