Losing Key Expertise or Processes to Foreign Firms When Outsourcing

question 70

Multiple Choice

Losing key expertise or processes to foreign firms when outsourcing products or components is:

• A) A symptom of inadequate supply chain management
• B) An outsourcing control problem
• C) Loss of core competencies
• D) All of the above

---

Definitions:

Compounded Annually

Interest on an investment calculated once a year on both the initial principal and the accumulated interest from previous periods.

Compounded Semi-Annually

A process by which interest is added to an investment's principal sum twice per year, leading to exponential growth.

Compounded Monthly

A method where interest is calculated and added to the principal balance each month, leading to interest earning interest over time.

Annual Effective Rate

The interest rate on a loan or investment, adjusted for compounding over a one-year period.