Which of the Following Has Enhanced the Ability of Investors

question 19

Multiple Choice

Which of the following has enhanced the ability of investors, without any special business skills, to benefit from the ownership of corporate America?

• A) the increased availability of mutual funds that make it possible for even small investors to purchase a diverse stock portfolio at a low cost
• B) an increased tendency of small investors to buy and sell stock frequently, using stock tips from investment experts
• C) the virtual disappearance of business failures among corporations with publicly traded stock shares
• D) all of the above

Understand the role of current employees in the selection process.

Know the application of the 80 Percent Rule to identify adverse impact.

Comprehend how a firm's choice in recruiting methods influences applicant quality.

Recognize the goal of recruitment in predicting job task performance.

---

Definitions:

Notes Receivable

A claim against a debtor for an uncollected amount, typically evidenced by a formal instrument of credit.

Face Value

The nominal value printed on a bond, note, or other financial instrument, representing its value at maturity.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Dishonored

A term used when a financial instrument, such as a check or bill of exchange, is not paid upon presentation or when agreed terms are not met.