One Potential Disadvantage of Using Contingent Workers Is That

question 39

Multiple Choice

One potential disadvantage of using contingent workers is that:

• A)the costs for their health care, paid time off, and contributions to a retirement plan can be considerable
• B)the company may have to adjust the number of contingent workers that it uses to meet business needs
• C)there can be substantial training expenses
• D)they may not feel a strong connection to the company for which they are working

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate a company's financial health and potential growth.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

Earnings Per Share

A measure of a company's profitability, calculated by dividing the company's net income by the number of its outstanding shares.

Current Liabilities

Obligations or debts that a company must pay within a year.