According to Employment Law Guidelines,a Manager Must Use Only Predictors

question 15

True/False

According to employment law guidelines,a manager must use only predictors which have some supporting evidence of their reliability and validity in predicting job performances.

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Definitions:

Operating Leverage

A financial ratio that measures the proportion of fixed costs in a company's cost structure, indicating how a change in sales volume will impact operating income.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by subtracting a firm's cost of capital from its operating profit.

Compensation

Payment or benefits provided in exchange for services rendered or as reimbursement for expenses, often related to employment or services provided.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.