Which statement is true about referrals? Group of answer choices Referrals fall under the category of internal sources of recruitment. The use of referrals can contribute to nepotism. The use of referrals tends to increase the likelihood of exposing an organization to different viewpoints. Referrals are the least preferred sources of new hires. Referrals cost much more than other formal recruiting efforts.

Explanation: Referral is the process of transferring someone or something to another, of sending by reference, or referring. It is an external source of recruitment that is quite cheap, costs less than other formal recruitment methods and often times produces the best sources of new hires. However, the use of referrals limits the organization's exposure to varying viewpoints and contributes to hiring processes that are considered unfair such as nepotism. In this case, the use of referrals tend to promote nepotism (the favoring of relatives or personal friends because of their relationship rather than because of their abilities).