Which of the Following Is NOT a Benefit to the Firm

question 112

Multiple Choice

Which of the following is NOT a benefit to the firm using the internal labor market to select a new CEO?

• A) Internal hiring results in an increased level of innovation.
• B) Insiders are familiar with the firm's products.
• C) Use of the internal labor market reduces turnover among existing employees.
• D) Insiders are more familiar with a firm's operating procedures.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Net Income

The amount of profit that remains after all operating expenses, interest, taxes, and dividends have been subtracted from total revenues.

End-of-period Spreadsheet

A document or report summarizing the financial status of a company at the end of a fiscal period, including assets, liabilities, and equity.

Statement of Stockholders' Equity

A financial document that represents the changes in the equity interests of a company’s shareholders over a reporting period, including the issuance or purchase of shares, dividends paid, and earnings or losses.