To Manage Control Yet Realize the Financial Benefits That Come

question 24

Short Answer

To manage control yet realize the financial benefits that come with outsourcing, firms have created ____________subsidiaries to operate on their behalf and provide services.

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Definitions:

Share Options

Are financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of a company at a predetermined price within a specified timeframe.

Incentive

A motivational factor or reward that encourages a person or group to act in a certain way or achieve higher levels of performance.

Gain-sharing

A performance-related pay strategy that offers employees financial rewards based on improvements in the company's productivity or performance.

Productivity

The efficiency at which goods or services are produced relative to the input used.