Many Companies Use Referrals by Current Employees as a Source

question 46

Multiple Choice

Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because

• A)it is less expensive than the fees paid to headhunters.
• B)current employees normally are careful in recommending someone due to their personal credibility.
• C)it is a good test of employee loyalty.
• D)current employees are careful in their recommendations; it is less expensive than the fees paid to headhunters.

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Definitions:

Mutual Agency

A legal principle in partnerships where each partner has the authority to act on behalf of, and bind, the partnership in contractual agreements.

Unlimited Liability

Partners may be personally liable for debts of the partnership.

Limited Risk

Financial exposure that is knowingly restricted or minimized in investments or business operations.

Articles of Partnership

A legal document that specifies the rights, duties, and obligations of each partner participating in a partnership business.