By Comparing the Knowledge, Skills, and Abilities That Employees Bring

question 28

Multiple Choice

By comparing the knowledge, skills, and abilities that employees bring to the job with those that are identified through job analysis, managers can determine the gap that exists. This is particularly useful for

• A) establishing recruitment criteria.
• B) determining a job's pay range.
• C) training and development.
• D) designing the job.
• E) union negotiations.

---

Definitions:

Risk-Free Rate

An anticipated gain from an investment devoid of financial risk, frequently illustrated through the returns on state bonds.

Arbitrage

The simultaneous purchase and sale of an asset in different markets to exploit price differences for a risk-free profit.

Mispricing

The occurrence of an asset being priced either higher or lower than its intrinsic value due to market inefficiencies or errors in analysis.

Riskless Profits

Profits made from trading or investing that are deemed to have no risk; often considered unrealistic in practical financial markets.