Which of the Following Statements About Selection Testing Is TRUE

question 7

Multiple Choice

Which of the following statements about selection testing is TRUE?

• A)Studies have shown that approximately two-thirds of Canadian organizations use tests for hiring.
• B)The use of tests has been declining in recent years.
• C)Selection testing generally involves a demonstration of skills.
• D)Testing is more prevalent in small organizations.
• E)Personality and aptitude tests are not commonly used for selection purposes.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle, such as accounts payable, wages payable, and short-term loans.

Company's Liquidity

The ability of a company to meet its short-term debt obligations, often assessed through liquidity ratios like the current ratio and quick ratio.

Times Interest Earned

A ratio measuring a company's ability to meet its interest obligations from its operating income.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically expressed as an annual rate.