Future Business Leaders of America (FBLA) Agribusiness Practice Test

What does a fee paid by a company to an agency typically refer to?

1. A salary for employees

2. A commission for sales

3. Payment for recruitment services

4. Funds for employee training

The correct answer is: Payment for recruitment services

The fee paid by a company to an agency typically refers to payment for recruitment services. This payment is a common business practice where companies hire external agencies to help them find, screen, and onboard candidates for job openings. Recruitment agencies specialize in various industries and have extensive networks and resources to identify qualified candidates. The fee is compensation for the agency's expertise and the time they invest in managing the recruitment process, allowing companies to save time and improve their hiring effectiveness. In contrast, salaries for employees, commissions for sales, and funds for employee training are internal expenses associated with a company's workforce and operations, rather than fees paid to external agencies for specific services.