Test validity in employment testing is demonstrated through criterion validity and content validity

Company A’s inventory turnover is 5 and Company B’s is 3. Which of the following conclusions can be drawn?

a. Company A has a higher risk of stock-outs than Company B. b. Company A has a lower risk of lost sales than Company B. c. Company A converts its inventory to profits slower than Company B. d. Company A has a higher risk of product theft than Company B.

Which of the following characterizes a highly leveraged company?

A) high total assets relative to total debt B) high total debt relative to total assets C) high total debt relative to inventories D) high total interest payments relative to total debt