What Is a Disadvantage of Using Contract Employees for Small

question 68

Multiple Choice

What is a disadvantage of using contract employees for small businesses?

• A) The contracting company determines who gets promoted.
• B) The Canada Revenue Agency may rule the contractor is an employee.
• C) They still have to pay EI and CPP on their contract worker pay.
• D) The contracting company determines the length of the contract.

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can contribute to an organization's performance and economy.

Shortage

A situation in which the demand for a product or service exceeds the available supply, often leading to higher prices or unmet consumer needs.

Organizational Flexibility

The ability of an organization to adapt rapidly and efficiently to changes in the internal and external environment.

HR Forecasting

The process of predicting an organization's future human resources needs based on current data, trends, and projected future events to ensure that the right number of people with the right skills are available when needed.