Which of the Following Statements Is a Disadvantage for a Company

question 5

Multiple Choice

Which of the following statements is a disadvantage for a company that outsources jobs?

• A) The need to purchase and update computers and related equipment increases substantially.
• B) The potential to groom and hire from within an enculturated workforce decreases.
• C) The work force size within the company increases, thereby increasing its salary budget.
• D) The company's contribution to employee health benefits, retirement, and 401(k) payments increases.

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Definitions:

Inflation

A general increase in prices and fall in the purchasing value of money over a period.

Recession

A period of significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Tax Rates

The percentages of income or value of goods that individuals or companies must pay to the government.

Big Government

A term often used to describe a government or state that has expansive powers and is heavily involved in various economic and social sectors.