The Form of Criterion-Related Validity That Reflects the Degree to Which

question 11

Multiple Choice

The form of criterion-related validity that reflects the degree to which a test score correlates with a criterion measure that was obtained some time subsequent to the test score is known as

• A) predictive validity.
• B) construct validity.
• C) concurrent validity.
• D) content validity.

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Definitions:

Control Investment

An investment in which the buyer gains significant influence or control over the operations of the investee.

Acquisition Differential

The Acquisition Differential is the difference between the purchase price of a company and the fair value of its identifiable net assets at the time of acquisition.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt.

Cost Method

An accounting method used for recording investments, where the investment is recorded at purchase cost without subsequent change for market value fluctuations.