The Primary Disadvantage of Using a PEO Is Decreased Employee

question 112

True/False

The primary disadvantage of using a PEO is decreased employee loyalty, which is why employee leasing is declining in popularity.

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Definitions:

Elastic

Describes a situation where the demand for a product or service significantly changes in response to a change in its price.

Price Elastic

Relating to the responsiveness of the demand or supply of a good or service to changes in its price.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.