In EEOC V Consolidated Service System, the Defendant Was a Janitorial Firm

question 6

Multiple Choice

In EEOC v. Consolidated Service System, the defendant was a janitorial firm owned by a Korean immigrant and staffed mostly with Korean immigrants. The court disagreed with the EEOC and found that the defendant's use of word-of-mouth recruiting did not cause

• A) disparate impact discrimination
• B) disparate treatment discrimination
• C) A or B
• D) None of the above.

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Definitions:

Controlling Interest

Ownership interest in a company that is sufficient to control the company's policies and management decisions, typically through a majority of voting rights.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Fair Value Enterprise Method

An accounting approach for valuing a subsidiary company at its current market value rather than its book value or cost in the financial statements of a parent company.

Identifiable Net Assets

Assets that can be separately identified and measured apart from the business entity, often relevant in the valuation of companies for acquisition or reporting purposes.