Which of the Following Is FALSE About Using Credit Checks

question 5

Multiple Choice

Which of the following is FALSE about using credit checks as a selection measure?

• A)Many studies have shown credit checks are not valid predictors of performance.
• B)Credit checks disadvantage minority group members,thus credit checks are vulnerable to legal challenges
• C)Applicants view credit checks as unfair so highly qualified candidates are more likely to turn down an offer from a company that uses credit checks
• D)Applicants view credit checks as unfair so rejected candidates are more likely to file a legal challenge

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Definitions:

Total Productivity

The overall effectiveness and efficiency of an entity in generating outputs from a set of inputs over a specific period of time.

Wage Rate

The fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee.

Union Labor

Labor unions are organized groups of workers who unite to make decisions about the conditions of their work.

Elastic Demand

Describes a situation where the quantity demanded of a product changes significantly in response to changes in its price.