Which of the Following Is an Example of Adverse Impact

question 49

Multiple Choice

Which of the following is an example of adverse impact?

• A)A company isolating an employee because of his sexual orientation.
• B)A company rejecting applications from people with disabilities on the assumption that they cannot adequately do the job.
• C)Evaluating an employee less favorably because the recruiter disapproves of his cultural beliefs.
• D)Singling out an employee as spokesperson based on his race.
• E)Failing to make reasonable accommodation for an employee based on his gender.

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Definitions:

NPV Method

Net Present Value method, a financial analysis tool used to determine the value of an investment by discounting future cash flows to their present value.

IRR Method

The IRR method, or Internal Rate of Return method, is a financial analysis tool used to evaluate the profitability of an investment by calculating the interest rate at which net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Cost of Capital

The rate of return required by a company to undertake an investment or project, often used as a discount rate in capital budgeting.

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment, ignoring the time value of money.