Ethel Applied for a Job as a Credit Card Account

question 3

Multiple Choice

Ethel applied for a job as a credit card account manager with a major financial institution.Your organization obtained her credit report through a third party investigation.She was not hired because of her recent bankruptcy and poor credit history.As the vice-president of human resources, you are aware of this situation because Ethel is suing the company for your hiring practices.Which of these facts of the case shows that your procedures were faulty?

• A) Ethel received a copy of her credit report.
• B) Ethel was not given written notice the third-party investigation was being conducted.
• C) Ethel was asked questions about how she made account decisions for credit applicants during the interview.
• D) Ethel’s resume was incomplete.
• E) Credit problems are not reasonable exclusions for this job.

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Definitions:

Balance Sheet

A financial statement that shows a company’s assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Significant Influence

The power to participate in the financial and operating policy decisions of another entity, often reflected by ownership of 20% to 50% of the voting stock.

Fair Value Through Profit or Loss

A classification for financial instruments that are measured at fair value with changes recognized in profit or loss.

Shares

Units of ownership interest in a corporation or financial asset, representing a portion of the shareholder's stake in the company.