Clarissa is interviewing several people for a job at her firm. Before making a decision, she checks their references and runs a credit report. This is an example of:

Question

Quizplus · Accepted Answer

Screening is the process Clarissa is using by checking references and running a credit report to gather more information about the candidates before making a hiring decision. This helps reduce the risk of asymmetric information by obtaining more knowledge about the applicants' backgrounds and reliability.

Clarissa Is Interviewing Several People for a Job at Her