As His Business Grows,George Finds He Does Not Have Either

question 103

Multiple Choice

As his business grows,George finds he does not have either the time or the skills to manage the human resources function.He has decided to outsource part of personnel management to an organization that handles paperwork and administers benefits for his employees in an arrangement called

• A)a joint venture.
• B)co-employment.
• C)employment benefits.
• D)human resourcing.

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Definitions:

Days' Sales

Days' Sales, often referred to as Days Sales Outstanding (DSO), measures the average number of days it takes a company to collect payment after a sale has been made.

Inventory

Inventory is the total amount of goods and materials held by a company for the purpose of resale or production.

Return on Total Assets

Return on Total Assets is a financial ratio that measures the profitability of a company in relation to its total assets, indicating how effectively a company is using its assets to generate earnings.

Profitability

The ability of a company to generate earnings above its costs and expenses over time.