The Use of Contingency Personnel May Be Advantageous in All

question 58

Multiple Choice

The use of contingency personnel may be advantageous in all the following situations EXCEPT:

• A) companies faced with stable demand for their products or services.
• B) for certain types of hard-to-find expertise.
• C) trying to staff new offices in geographic areas far from the main headquarters.
• D) trying to staff positions to work on projects in which unusually high risk factors may jeopardize a company's existing workers' compensation rates.

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Definitions:

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, measuring the rate of return where the net present value of all cash flows from a particular project equals zero.

Present Value Factors

Mathematical factors used in calculating the present value of future cash flows, considering the time value of money.

Cash Outlay

The actual amount of cash spent by a business on expenses, such as purchasing assets, repaying debts, or covering operational costs.

Desired Rate

Often refers to the target or preferred rate of return on investment or progress in a specific area, such as growth or interest.