A Method of Containing Costs That Allows a Professional Employer

question 23

Multiple Choice

A method of containing costs that allows a professional employer organization (PEO) , typically a larger company, to take over the management of a smaller company's HR tasks and become a coemployer to its employees is known as

• A)outsourcing.
• B)employee leasing.
• C)furloughing.
• D)nearshoring.

---

Definitions:

Corporation

A business organized as a separate legal entity under state corporation law, having ownership divided into transferable shares of stock.

Earnings Per Share

A financial metric that measures the portion of a company's profit allocated to each outstanding share of common stock, presenting a company's profitability.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership value in the company.

Sales Revenue

The total income received by a company from its sales of goods or services before any expenses are subtracted.