Which of the following, if true, strengthens Gatsby’s position that co

QUESTION

Which of the following, if true, strengthens Gatsby’s position that contingent positions be created?

A) During the economic downturn, a high number of well-qualified financial advisors were laid off, many of whom would now be willing to take positions as contingent workers.
B) Contingent workers often do not develop a strong commitment to their company.
C) Greeley & Gatsby currently has a balance sheet that would support creating permanent salaries for the full-time positions needed.
D) The new outlets would open under a new brand name so potential customers would not remember the bad publicity caused by the firm’s near-bankruptcy.
E) Financial experts predict a long period of stagnant stock market performance, followed by slow but steady growth.

ANSWER

Answer: A

Explanation: A) If a firm can take advantage of an opportunity for rapid growth by accessing an available labor force with expert knowledge, then using contingents can be an efficient option. So Choice A is correct: if there is an ample supply of already-experienced workers, then Gatsby’s instincts are well founded. Choice B mentions a common disadvantage of using contingent workers—the company has not made a full commitment to them, and they reciprocate in kind. Full-time workers are more costly to hire, but Choice C says that the company can afford them, which strengthens Greeley’s position. Choice D is probably a shrewd marketing move, but it’s not really relevant to the contingent/full-time issue. Choice E may be a reason for thinking the expansion will be beneficial in the long run, but it’s also not relevant; besides, long-term predictions are often wrong.