Reference Checking Serves the ____ by Obtaining Information from Parties

question 44

Multiple Choice

Reference checking serves the ____ by obtaining information from parties who have witnessed an applicant's past behavior firsthand.

• A) behavior consistency model
• B) content-oriented strategy
• C) criterion-related strategy
• D) validity generalization strategy

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Definitions:

Character

In finance, character often refers to the qualitative assessment of a borrower's integrity and history in meeting debt obligations, used in credit analysis.

Capacity

The maximum amount that something can contain or produce, often used in the context of production and manufacturing facilities.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of a business.