Succession Management Depends on Internal and External Candidates

question 35

Multiple Choice

Succession management depends on internal and external candidates.Which of the following is an advantage of internal candidates?

• A)Internal candidates may have better skills to lead the organization through a major transformation.
• B)Internal candidates bring new knowledge acquired through training and development.
• C)Internal candidates prevent the organization from becoming stagnant.
• D)Internal candidates can preserve the corporate culture.

---

Definitions:

Four-Firm Concentration Ratio

A measure of market structure that indicates the combined market share of the four largest firms in an industry, used to assess the level of competition.

Market Power

The ability of a firm or group of firms to manipulate prices or output in a market.

Excess Capacity

The situation where a firm or an economy is producing less than its potential output, often indicating inefficiencies or a lack of demand.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not perfect substitutes, allowing for some degree of market power.