Kendell Adams owns a software development company. When he first launched his firm, he was carefully to hire employees who had the experience he was looking for, were good matches for the positions he had available, and could be properly supervised. As Kendell's firm has grown, and his need for employees has increased, he is finding that it is increasing difficult to find employees who have the qualifications he is looking for, are good matches for the positions he has available, and fit within the supervisory framework he has developed. Kendell is dealing with an issue referred to as:
A) adverse hazard
B) adverse selection
C) complicated hazard
D) ethical hazard
E) moral selection

Question

Quizplus · Accepted Answer

Kendell is dealing with adverse selection, which occurs when the pool of potential employees for a position is limited, and the available candidates do not meet the qualifications or requirements for the position. As his company has grown, it has become more difficult for Kendell to find new employees who meet his standards and fit into his existing supervisory framework. This is a common challenge for expanding companies that require highly skilled or specialized workers. Adverse hazard, complicated hazard, ethical hazard, and moral selection are not relevant terms or concepts in this scenario.

Kendell Adams Owns a Software Development Company