One of the Reasons Many Firms Have Chosen to Use

question 62

Multiple Choice

One of the reasons many firms have chosen to use temporary employees rather than rehire full-time employees is that

• A) the government provides strong tax incentives to hire temporary workers.
• B) such workers usually are more loyal to the firm.
• C) most labor laws only apply to full-time workers, so there are fewer legal hassles associated with hiring temporary workers.
• D) it enables them to avoid the prohibitively high costs associated with terminating employees.

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Definitions:

Operating Departments

Units or divisions within an organization that are directly involved in its primary revenue-generating activities.

Transfer Price

The price charged for goods or services transferred among divisions or subsidiaries within the same company.

Valve Division

A business segment or department within a larger company that specializes in the production, distribution, and sale of valves.

Customer Service Department

A division within a company that handles customer inquiries, complaints, and provides support and assistance.