Which of the Following Is an Example of Adverse Impact

question 28

Multiple Choice

Which of the following is an example of adverse impact?

• A)At a large manufacturing company,only employees with college degrees are considered for supervisory positions.The employees working in the factory are predominantly Hispanic and Asian,but there are no Hispanic or Asian supervisors.
• B)A small police department has implemented a physical agility test for all its current police officers.The test includes a short distance sprint,a wall to be climbed,and a requirement that each participant do four underhand,free-hang pull-ups.If any officer fails the test,they will be given three months to retest,and if they fail again,they are terminated.Fifteen percent of the police officers currently employed at this department are women,and they all failed the test on the first try.Five percent of male officers failed the test on the first try.
• C)Language interpreters for a telephone-based interpreting firm are given written and verbal tests to ensure that their language skills are sufficient for certain types of jobs.If employees fail the test,they are given three months to retest and if they fail again,they are terminated.One quarter of the employees failed the written test the first time they took it.
• D)One particular supervisor at an insurance company consistently gives lower performance ratings to employees who are Hispanic or black than he gives to employees who are white or Asian.Low performance ratings effect promotions and pay increases.

---

Definitions:

Face Value

The nominal value or original monetary value printed on a security or currency note.

Bonds Payable

Long-term liabilities representing money a company owes to bondholders, to be repaid at some future date plus interest.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, included on the income statement.

Semi-Annually

Occurring twice a year or every six months, typically used in relation to payments, reports, or interest accruals.