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Thanks for sharing, G. Good way for the employer to test basic writing abilities!
Tests are great instruments, but the one you took sounds pretty general. We provide tests in software and typing, as well as an editing test that allows the candidates to showcase their ability to edit to a specific level (basic, standard, diagnostic) and speed and to edit the specific kind of content we go through everyday. (This is after hiring someone simply based on their resume, references, and interview who was not able to pick up the necessary skills on the job.)
Hope something promising turns up--or hope business turns promising and they stop laying off at your company!