Which of the Following Is Not a Strategic Risk of Outsourcing

question 63

Multiple Choice

Which of the following is not a strategic risk of outsourcing?

• A) Loss of critical skills
• B) Loss of cross-functional skills
• C) Loss of control over a supplier
• D) Loss of non-vital functions

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Definitions:

Gains

Refers to increases in wealth, income, or resources, often resulting from investment or business operations.

Losses

The negative financial result from an entity's operations, when the total costs exceed total revenues.

Game Theory

A mathematical and analytical framework used to study strategic interactions among rational decision-makers, aiming to predict outcomes in competitive situations.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.