Linda Owns a Bakery and Wants to Hire Bill, a Web-Page

question 3

Multiple Choice

Linda owns a bakery and wants to hire Bill, a Web-page developer, to create a new site for her company. Linda does not need Bill on staff permanently. Bill would be considered a(n) ________.

• A)contingent worker
• B)independent contractor
• C)consultant
• D)flextime worker

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Definitions:

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.

COGS/Sales

COGS/Sales is a financial ratio that measures the cost of goods sold against the total sales revenue, often used to assess the efficiency of production.

Taxes/Sales

A ratio that shows the proportion of taxes paid relative to total sales revenue, often used in financial analysis.

Highly Levered Firm

A company that has more debt than equity, indicating it uses significant leverage in its capital structure.