The base level of EBIT must be held constant to compare the financial leverage associated with different levels of fixed financial costs

To test the validity of the selection test for advanced widget designers, Correll-Techno Inc. administers the test to the present widget makers in the company. The test results are then compared with the employees' latest performance appraisal scores. In this instance, what type of validation does Correll-Techno implement?

A. Predictive validation B. Concurrent validation C. Content validation D. Construct validation E. Diagnostic validation

When confronted with a decision, managers should utilize ________, which includes these four questions: “Is the proposed action legal? If yes, does the proposed action maximize shareholder value? If yes, is the proposed action ethical? If no, would it be ethical to take the proposed action?”

a. Maslow’s hierarchy of needs b. the stakeholder’s value statement c. Bagley’s ethical decision tree d. the Sarbanes–Oxley Act of 2002