Many Companies Use Referrals by Current Employees as a Source

question 69

Multiple Choice

Many companies use referrals by current employees as a source for new hiring because

• A) it is more expensive than the fees paid to headhunters.
• B) current employees are very competitive and want to outperform those they refer.
• C) it is a good test of employee loyalty.
• D) current employees are normally very careful in recommending someone because their credibility is on the line.

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Definitions:

Property Rights

Legal rights to possess, use, and dispose of assets, including real property or intellectual property, ensuring control and economic benefits to the rights holder.

External Costs

Costs of a transaction or activity that affect parties who are not directly involved in it, such as pollution affecting the wider community.

Law of Demand

The principle that, all else being equal, an increase in the price of a good will decrease the quantity demanded, and a decrease in price will increase the quantity demanded.

Income Taxes

Taxes levied by governments on individual or corporate income.