When a firm focuses on hiring only for entry-level jobs and it tends to promote from within the firm, then the firm is said to:
A) use the benchmark competitive labor market.
B) have an internal labor market.
C) hire based on human capital.
D) use compensating differentials.

Question

Quizplus · Accepted Answer

When a firm focuses on only hiring for entry-level positions and promoting from within, it is said to have an internal labor market. In this type of labor market, employees tend to be hired and advanced based on their skills, knowledge, and potential as evaluated by the firm, rather than the external labor market.

When a Firm Focuses on Hiring Only for Entry-Level Jobs