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While Doing a Background Check on a Candidate Who Is

question 9

Multiple Choice

While doing a background check on a candidate who is superbly qualified for the sales job for which he has applied, you learn that he was dishonorably discharged from the U.S. Army. When you ask him about it, he explains that he was 18 years old at the time, and the death of his father, whom he had only recently met, had a devastating impact on him. He began to drink to excess, often failed to report to his duty station. After his dishonorable discharge, he righted himself, started working, and got counseling. Everyone at your firm who has interviewed him found him to be very personable, and very able, and they're eager for him to start. You've told them about the dishonorable discharge, and it's made no difference to their decision. Should you tell other employees about the dishonorable discharge?

Definitions:

Net Present Value

A calculation that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Debt-to-Assets Ratio

A financial ratio indicating the percentage of a company's assets that are financed through debt.

Flotation Costs

Expenses incurred by a company when it issues new securities, including fees for underwriting, legal counsel, and registration.

After-Tax Cash Inflows

The amount of cash generated from operations or investments after accounting for taxes, crucial for evaluating financial performance.