Which of the Following Is NOT a Benefit to the Firm

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 an increased level of innovation.
B) Insiders are familiar with the firm's products, markets, technologies, and operating procedures.
C) Use of the internal labor market reduces turnover among existing employees.
D) Insiders are more familiar with a firm's operating procedures.