Perhaps the Biggest Drawback Associated with Employee Referrals Is the

question 86

Essay

Perhaps the biggest drawback associated with employee referrals is the
potential for systemic discrimination.
dissatisfaction of employees whose referral is not hired.
unrealistic expectations newly hired employees have about the firm.
potential for morale problems.
costs involved in providing cash awards.

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Definitions:

Monopolistically Competitive Firm

A company that operates in a market with many competitors, each offering a differentiated product, allowing for some degree of price control.

Average Costs

Costs per unit of output, calculated by dividing the total cost of production by the number of units produced.

Profit-maximizing

The process or strategy of adjusting production and sales to achieve the highest possible profit margin.