Which of the Following Is a Concern About the Use

question 88

Multiple Choice

Which of the following is a concern about the use of assessment centres?

• A)Managers may use them as a way to avoid difficult promotion decisions.
• B)They are expensive considering that most psychological traits, such as leadership and initiative, can be accurately assessed by paper-and-pencil techniques.
• C)The conclusions reached are rarely valid.
• D)A clever participant can fake the results.

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Definitions:

Required Rate

The minimum return that investors demand for investing in a particular asset, reflecting the risk of the investment.

Discounted Payback Period

A capital budgeting method that calculates the amount of time needed to break even from an investment in present value terms, factoring in the time value of money.

Discount Rate

In discounted cash flow analysis, it's the rate of interest used for calculating the present day value of future financial inflows.

Cash Flows

The sum of all money transactions both incoming and outgoing in an establishment, affecting its ability to maintain liquid resources.