Why Are Former Employers Reluctant to Furnish Negative Information to Prospective

question 153

Multiple Choice

Why are former employers reluctant to furnish negative information to prospective employers of their former employees?

• A) Most states prohibit such disclosures by law
• B) Invasion of privacy
• C) Slander or libel
• D) None of the above

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Definitions:

Sarbanes-Oxley

A U.S. federal law established to improve corporate governance, prevent fraudulent financial practices, and protect shareholders from corporate abuses.

Executive Compensation

The total package of benefits, including salary, bonuses, stock options, and other perks, provided to top executives of a company.

Pension Plans

Financial programs that provide income during retirement, funded through contributions from employers, employees, or both.

Corporate Scorekeeping

The practice of monitoring and recording the financial and operational performance indicators of a company.