Managers May Outsource a Service Because They Do Not Consider

question 29

True/False

Managers may outsource a service because they do not consider it a core competency.

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Definitions:

Recourse

The ability to seek compensation or redress, often through legal means, from a source when subjected to damage or loss.

Procedural Unconscionability

A legal term referring to a situation where the terms of a contract are so unfair or the process is so unequal that it shocks the conscience.

Substantive Unconscionability

Refers to a condition in contract law where the terms of a contract are extremely unfair or one-sided in favor of the party who has the superior bargaining power.

Administrative Costs

Expenses related to the general operation of an organization, such as salaries of non-production staff, office supplies, and utilities.