Which of the Following Is a Valid Statement About Contingent

question 375

Multiple Choice

Which of the following is a valid statement about contingent workers?

• A) Contingent workers are seldom skilled professionals.
• B) By law, employers must provide contingent workers the same salary and benefits as permanent employees.
• C) An increasing number of companies are hiring skilled professionals, such as accountants, as part of their contingent workforce.
• D) By law, companies cannot hire contingent workers as part of the management team.

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Definitions:

Variable Cost

Variable Cost refers to costs that change in proportion to the level of goods or services that a business produces.

Sales Commissions

Sales commissions are payments made to salespersons for selling products or services, typically a percentage of the sale price.

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenues, indicating the extent to which a firm can increase profits by increasing sales.