A School Hired a Bus Driver Without Conducting a Multistate

question 35

Multiple Choice

A school hired a bus driver without conducting a multistate criminal background check; the school conducted a background check only in the state in which it is located. Subsequently, the driver was convicted of kidnapping one of the children who traveled in his bus. The prosecution in the case revealed that the driver had been convicted 10 years ago for a similar case in another state. In this scenario, the school is guilty of _____.

• A) information falsification
• B) stereotyping
• C) compensatory hiring
• D) negligent hiring

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Definitions:

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profitability that includes all expenses except interest and income tax expenses.

Unlevered Firm

A company that operates without any debt financing, relying solely on equity for its financing needs.

Levered

Pertaining to the use of borrowed capital or debt to increase the potential return of an investment.

Break-Even EBIT

The level of Earnings Before Interest and Taxes that a company needs to achieve in order to cover all of its operating expenses without making a profit or loss.