Which of the Following Scenarios Best Illustrates Outsourcing

question 99

Multiple Choice

Which of the following scenarios best illustrates outsourcing?

• A) Octagon Inc., an American smartphone company, exports its products to different countries in Europe and North America.
• B) Hexagon Corp. entices its employees to volunteer to leave the organization by offering severance benefits.
• C) Oasis Inc., an American publishing company, transfers the task of payroll processing to Crimson Inc., an American HR consulting company.
• D) Eagle Inc. rehires retirees on a part-time or temporary basis to fill talent gaps in the organization.

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Definitions:

Cost Complementarity

Occurs when the cost of producing one good decreases with the increase in production of another good, showing a synergy between the production processes of two goods.

Diseconomies Of Scope

The phenomenon where the cost of producing two or more products together is higher than producing them separately.

Economies Of Scope

cost advantages that enterprises obtain due to the efficient allocation and utilization of resources across multiple products or services.

Diseconomies Of Scope

A situation in which a company experiences increased costs as a result of increasing the variety of goods or services it produces.