Which of the Following Statements Is True Regarding Referrals

question 55

Multiple Choice

Which of the following statements is true regarding referrals?

• A) Referrals fall under the category of internal source of recruitment.
• B) The use of referrals tends to increase the likelihood of exposing the organization to fresh viewpoints.
• C) The use of referrals tends to promote nepotism.
• D) Referrals cost much more than other formal recruiting efforts.
• E) Referrals are the least preferred sources of new hires.

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Definitions:

Marginal Revenue

Marginal Revenue refers to the extra revenue that is earned by selling an additional unit of a product or service.

Marginal Cost

The hike in total expenditure linked to the production of one additional good or service unit.

Monopolistically Competitive

Describes a market structure where many firms sell products or services that are similar but not perfect substitutes, leading to competitive pricing and differentiation.

Normal Profit

The minimum profit necessary for a company to remain competitive in the market, accounting for the cost of opportunity.