What Problem Is Faced When Doing a Credit Check on Candidates

question 23

Multiple Choice

What problem is faced when doing a credit check on candidates that is not present when using resumes or reference checks?

• A) lost time in the hiring process
• B) greater financial cost to the hiring authority or company
• C) discriminatory disparate impacts based on gender
• D) discriminatory disparate impacts based on race

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Definitions:

Consideration

Something of value exchanged between parties in a contract, which can include money, services, or goods, making the contract legally binding.

Indorsement

A signature or stamp placed on a negotiable instrument (such as a check) that indicates the future control or ownership of the instrument.

Secondary Liability

Secondary liability occurs when a party is held responsible for the actions of another, typically in situations where the primary party fails to fulfill their obligations.

Contingent Liability

A potential financial obligation that may occur, depending on the outcome of a future event.