How Did the Pendleton Act Reform the System of Hiring

question 89

Multiple Choice

How did the Pendleton Act reform the system of hiring and firing federal employees?

• A) It required hiring and firing decisions to be based on partisan loyalty rather than merit.
• B) It required hiring and firing decisions to be based on merit rather than partisan loyalty.
• C) It continued to allow hiring on the basis of merit, but made firing federal employees easier.
• D) It continued to allow hiring on the basis of partisan loyalty, but made firing federal employees more difficult.
• E) It allowed hiring on the basis of partisan loyalty, and made firing federal employees easier.

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Definitions:

After-Tax Discount Rate

The rate of return on an investment after accounting for taxes.

Incremental Sales

The additional revenue generated from a specific business action or decision, beyond the existing sales level.

Discount Factor

A financial metric used to determine the present value of a future cash flow, discounting it for risk and the time value of money.

After-Tax Discount Rate

A rate used in capital budgeting that takes into account the effects of taxes on the project's cash flows.