Some Employers Permit Telecommuting Where Employees Work from Home and Contact

Multiple Choice

Some employers permit telecommuting where employees work from home and contact the office through electronic methods. Which of the following identifies a problem that the employer may face?

A) Telecommuting could lead to the problem of self-selection.
B) The employer encounters new problems posed by moral hazard.
C) Telecommuting could contribute to an informal organizational structure.
D) The cost of hiring and retaining employees will increase.
E) Telecommuting can blur the boundaries of the firm.