Which of the Following Is NOT a Benefit to the Firm

question 15

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 a higher turnover rate of existing personnel.
• B) Insiders are familiar with the firm's products.
• C) Insider hiring reflects a desire for continuity.
• D) Insiders are more familiar with a firm's operating procedures.

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Definitions:

Internal

Existing or situated within the confines of an object, individual, or group, often referring to inner qualities or operations.

External

Originating from or existing outside oneself or the subject being considered, often influencing it from the outside.

Stable Internal

Characteristics or attributes within a person that are enduring and consistent across different situations, influencing behavior and attitudes.

Unstable External

Situations or factors outside an individual's control that are unpredictable and can affect their life or decisions.