Which of the following are the limitations of internal sources of recruitment?

(A) The scope for induction of fresh talent is reduced.

(B) Employees are motivated to improve their performance.

(C) The employees may not take challenging tasks if they are sure of time-bound promotions.

(D) Internal recruitment may boost the competitive environment in the organisation.

Choose the correct answer from the options given below:

Option 1 -> (A) and (D) only - Incorrect because (D) describes a benefit (boosting competitive environment), not a limitation of internal recruitment.

Option 2 -> (A) and (C) only - Correctly identifies the two actual limitations: reduced fresh talent induction and potential complacency with time-bound promotions.

Option 3 -> (A), (B) and (D) only - Incorrect because (B) and (D) are both advantages of internal recruitment, not limitations.

Option 4 -> (B), (C) and (D) only - Incorrect because (B) and (D) are benefits, and it misses (A) which is a key limitation.

Hence, Option 2: (A) and (C) only -> Statement (A) correctly identifies that internal recruitment limits the inflow of fresh talent and new perspectives. Statement (C) accurately points out that guaranteed time-bound promotions can lead to complacency, discouraging employees from taking on challenging assignments. Statements (B) and (D) describe advantages rather than limitations of internal recruitment. -> correct