A method of containing costs that allows firms to maintain working relationships while shifting administrative costs to another firm is known as ____.
A) Outsourcing
B) Employee Leasing
C) Gainsourcing
D) Professional employer organization

Question

Quizplus · Accepted Answer

Employee leasing, also known as staff leasing or professional employer organization (PEO), involves outsourcing administrative tasks such as payroll, benefits, and HR functions to another firm. This allows the original company to maintain their working relationships with employees while shifting the administrative burden and associated costs to the leasing firm. Outsourcing (A) refers to the practice of contracting out a specific task or service to an external provider, whereas gainsourcing (C) is not a commonly used term in business. Professional employer organization (D) is another term for employee leasing.

A Method of Containing Costs That Allows Firms to Maintain