Concerns About Outsourcing Include

question 4

Multiple Choice

Concerns about outsourcing include:

• A)supply's ability to provide the required inputs at the right quality and price.
• B)layoffs,exposure to supplier's risks,and loss of control.
• C)transitioning from supplier's operations to internal operations.
• D)losing long-term buyer-supplier relationships and cost advantages.
• E)loss of a lean enterprise as the supply base grows.

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Definitions:

Short-Term Financing

A type of corporate financing used to cover immediate financial needs and is typically due for repayment within a year.

ROE

Equity Return, which determines financial success by dividing the net income by the equity of the shareholders.

Short-Term Debt

Debts or loans that are due for repayment within one year.

Blanket Inventory Lien

A security interest granted by a borrower to a lender, covering all of the borrower's inventory.