In Comparing Internal Selection with External Selection, an Advantage of Internal

question 55

Multiple Choice

In comparing internal selection with external selection, an advantage of internal selection is that ________.

• A) internal selection requires few procedures to locate and screen viable job candidates
• B) internal selection presents fewer dangers of incurring legal liability than external selection
• C) information about internal candidates tends to be more verifiable than information about external candidates
• D) there is less need to use multiple predictors in assessing internal candidates than with external candidates

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Definitions:

Required Return

The minimum expected return an investor views as acceptable for an investment, based on its risk level.

Depreciation Rate

The rate at which an asset loses its value over time, often used for tax and accounting purposes to spread the cost of an asset over its useful life.

Average Accounting Return (AAR)

This is a financial metric used to assess the profitability of an investment, calculated by dividing the average net income by the average investment.

Profit Margin

A financial metric expressed as a percentage, indicating the ratio of a company's profits to its total revenues.