What Is the Key Reason Why the Quality of Employee-Referred

question 82

Multiple Choice

What is the key reason why the quality of employee-referred applicants tends to be high?

• A) Employees are hesitant to recommend applicants who might not perform well.
• B) Employees train the applicants.
• C) Employees tend to refer their friends and relatives.
• D) Inbreeding improves the quality.

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Definitions:

Average Fixed Cost

The cost incurred for fixed inputs (rent, salaries) divided by the quantity of output produced, which decreases as production increases.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor, in contrast to fixed costs.

Total Cost

The complete sum of all expenses incurred by a business or individual in producing a good or service.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, or insurance premiums.