A start-up company may prefer to rely on independent contractors instead of employees because it is more expensive to hire and train employees.

Question

Quizplus · Accepted Answer

Hiring and training employees can be costly for a start-up company, so they may choose to rely on independent contractors as a cost-effective alternative. Contractors are self-employed individuals who are responsible for their own taxes and benefits, which can save a company money in the long run. Additionally, contractors typically have specialized skills and can be hired on a project-by-project basis, which can be more efficient for a start-up with limited resources.

A Start-Up Company May Prefer to Rely on Independent Contractors