Answer:
Yes, the statement is true.
Step-by-step explanation:
Business owners and/or managers prefer to hire people referred this way because it has an additional layer of trust and performance assurance.
If a person refers someone personally to another, she/he will be putting her reputation at stake, hence it will be more careful with who she/he refers to. That would not happen if the referral happened thru another way, such as a curriculum data base.