Background checks are often performed on potential employees or business partners to differentiate candidates and ensure a thorough vetting process. Companies typically hire private investigation firms to conduct background checks, which may include checking an applicant's credit, legal, and education history. For executive level positions, background checks dig deeper and can reveal things like bankruptcy records, licenses, and confirm college education. Background checks on businesses are also useful for vetting potential partners by gathering information on personnel, finances, and operational history.