Beckenkall Consulting Is a Rapidly-Growing Management Consulting Firm

question 72

Multiple Choice

Beckenkall Consulting is a rapidly-growing management consulting firm.As it expands,it needs to hire a number of new consultants every year.The failure rate of new consultants has been too high.The director of HR has decided to see if the success rate of new hires can be increased by selecting applicants who not only have all the technical qualifications,but also have the same personality as successful consultants now working in the firm.Consequently,the HR director gives all the high-performing consultants the MMPI.She sees that there is one dominant type of personality in this group.Now,she has told the manager of recruitment to give the MMPI to applicants as one of the hurdles they must clear before being hired.This is an example of

• A) a test of reliability.
• B) post-hoc validity.
• C) a concurrent validity approach.
• D) a predictive validity approach.

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Definitions:

Acquisition

The process by which a company purchases most or all of another company's shares in order to take control of it.

Fair Value

The financial gain from selling an asset or the financial outlay for relocating a liability in an orderly market activity on the designated measurement day.

Consolidated Revenues

Total revenues generated by a parent company and its subsidiaries, presented in a combined form on the financial statements.

Contingency Payment

A payment that is made only if specific conditions are met, often used in acquisitions or contractual agreements.