According to Best Practice, When Should Background Checks Be Used

question 104

Multiple Choice

According to best practice, when should background checks be used?

• A)when dealing with an employee who has been accused of theft
• B)when noticing an employee's strange behaviour
• C)when terminating employees
• D)when screening applicants

---

Definitions:

Fair Value

The estimated market value of an asset or liability based on current conditions and acknowledged by both buyer and seller.

Assets

Economic resources owned or controlled by a business or individual, expected to provide future benefits.

Complex Capital Structure

A corporate structure that features a mix of simple and complicated financial instruments, including multiple levels of debt and equity.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the company's stock at the discretion of the bondholder, usually at certain times during their life.