I've partaken in a few different software job interview processes that involved multiple choice tests. To be specific, I'm not talking about coding tests with a few multiple choice questions tacked on the end, but rather interview processes where one of the steps in the process is "complete this lengthy multiple choice test." Doing this things this way seems like a very lazy way to screen candidates, and the tests invariably involve at least a few questions about some arcane portions of some specific library or the web API, which only tests my ability to google the answer rather than anything else.
In my experience, having an entirely multiple choice test step has correlated with deficiencies with other areas in the interview process/company, but I'm wondering if this is just because companies I interacted with previously just happened to use multiple choice tests and have other problems.
Is there any data suggesting that multiple choice tests are effective at selecting good candidates, suggesting that a good company might use them, or should I continue to regard multiple choice tests as a red flag?