What Is a Reason That Companies Might Want to "Buy

question 20

Multiple Choice

What is a reason that companies might want to "buy" instead of "make" talent from the market when looking to acquire employees with a particular skill set?

• A)External training methods are better than internal ones
• B)Companies are always willing to pay more for external employees
• C)External training is more advanced (up-to-date)than internal
• D)Scale economies can result in fixed education costs while in house education methods may be more expensive
• E)Externally trained employees are more likely to become better business leaders

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Definitions:

Monetary Unit Assumption

Accounting information should be measured and reported in the national monetary unit without any adjustments for changes in purchasing power.

National Monetary Unit

The primary currency of a country, used as a medium of exchange and basis for trade.

Purchasing Power

The value of currency expressed in terms of the amount of goods or services that one unit of money can buy.

Transaction

An exchange between a business and one or more external parties to a business or a measurable internal event such as the use of assets in operations.