Kendell Adams owns a software development company. When he first launched his firm, he was careful 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 increasingly 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 experiencing adverse selection, which is a situation where a limited pool of potential hires leads to suboptimal choices being made. As his company has grown, the number and quality of qualified candidates may have decreased, making it harder for him to find suitable employees.

Kendell Adams Owns a Software Development Company