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:

Unstructured Problems

Problems that have ambiguities and information deficiencies.

Programmed Decision

A decision that applies a solution from past experience to a routine problem.

Novel Solution

A new or innovative method devised to solve a problem or meet a challenge.

Sensation Thinkers

Individuals who prefer to rely on concrete, factual information and logical analysis when making decisions.