Which of the Following Can Be a Disadvantage of Internal

question 112

Multiple Choice

Which of the following can be a disadvantage of internal recruitment?

• A)Internal applicants are familiar with the goals of the organization
• B)Internal applicants are known to managers
• C)Internal recruiting can boost the morale of workers who didn't get promoted
• D)Internal applicants are familiar with the culture of the organization
• E)Internal recruitment tends to maintain the status quo

---

Definitions:

Capital Investment Funds

Financial resources that are used by a company to purchase physical assets like property, industrial buildings, or equipment.

Capital Rationing

The situation that exists if a firm has positive Net Present Value projects but cannot find the necessary financing.

Marginal Costs

The change in total production cost that arises when the quantity produced is incremented by one unit, reflecting the cost of producing one additional unit of a good.

Incremental Costs

Costs that change or increase depending on the decisions made by a company, such as starting a new production process or producing more units of a product.