Companies Run a Higher Risk of Litigation Due to Their

question 59

Multiple Choice

Companies run a higher risk of litigation due to their selection practices when:

• A) interviewers are not properly trained to ask job-related questions.
• B) tests given to the candidate are related to the specific job they perform.
• C) the organization has made every effort to validate selection criteria.
• D) the organization utilizes objective selection criteria.

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Definitions:

Negative Externality

occurs when the production or consumption of a good or service imposes costs on third parties not directly involved in the transaction.

Government Intervention

Actions taken by a government to influence or regulate the economy or specific industries, often to correct market failures or promote social welfare.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and other forms of involvement.