Adia, the Chief Executive Officer (CEO)of Touch Works Corp

question 30

Multiple Choice

Adia, the chief executive officer (CEO) of Touch Works Corp., believes that outsourcing would be a disadvantage to her company. She states that she would not be able to control the finances and assets of her company if work gets outsourced. Which of the following statements strengthens Adia's belief?

• A)Outsourcing would maximize the capital investment that Touch Works Corp. would require to grow.
• B)Outsourcing would prevent Touch Works Corp. from contracting out activities to industry specialists.
• C)Touch Works Corp. would be forced to focus on a wide range of activities.
• D)Touch Works Corp. would lose the ability to innovate and create competitive advantage.

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Definitions:

Days In Inventory

A financial ratio indicating the average number of days a company takes to turn its inventory into sales, reflecting inventory management efficiency.

Inventory

The goods and materials a business holds for the ultimate goal of resale or processing.

Days In Inventory

A financial metric that indicates the average number of days a company holds inventory before it is sold, calculated by dividing inventory by cost of goods sold and multiplying by 365.

Inventory

Materials and products that are held by a company for the purpose of sale or production.