To Reduce the Likelihood of Negligent Hiring Lawsuits Organizations Should

question 29

Multiple Choice

To reduce the likelihood of negligent hiring lawsuits organizations should _____.

• A) emphasize characteristics like licensure requirements, criminal records, and references
• B) avoid gathering too much KSAO information because it can be used to demonstrate that an organization "should have known" an employee would be a problem
• C) refuse to fire individuals with a history of mental illnesses
• D) none of the above are useful to prevent negligent hiring suits

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Definitions:

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Goodwill

An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised.

NCI Adjustment

Adjustments made to the non-controlling interest in a subsidiary to reflect their proportionate share of the profits or losses.

Consolidation Worksheet

A tool used in preparing consolidated financial statements, recording the assets, liabilities, and operating results of a parent company and its subsidiaries.