External shrinkage has consistently been reported as more serious of a problem to companies than internal shrinkage.

Question

Quizplus · Accepted Answer

Internal shrinkage, often caused by employee theft, mismanagement, or administrative errors, tends to be a more serious problem for companies than external shrinkage, which includes shoplifting and external theft. Internal factors can be harder to detect and control, leading to more significant losses over time.

External Shrinkage Has Consistently Been Reported as More Serious of a Problem