Hydrus Corp

question 61

Multiple Choice

Hydrus Corp. contracted most of its business processes to various other companies. This helped the company generate immediate profits, but Hydrus was losing competitive advantage over its rivals in the long run due to its lack of innovation. Which of the following is a danger of outsourcing that Hydrus Corp. experienced?

• A)Lack of control
• B)Loss of capabilities
• C)Lack of focus
• D)Loss of technology

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Definitions:

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.

Creditor

Someone who has a claim to assets.

Promissory Note Payable

A financial instrument that signifies a written promise by one party to pay a specific sum of money to another party under agreed terms.

360-Day Year

A simplified method of calculating interest for commercial loans or bonds that assumes each month has 30 days, resulting in a 360-day year.