Everything Else Being Equal, a Firm Considering Outsourcing Would Find

question 184

Multiple Choice

Everything else being equal, a firm considering outsourcing would find all of the following desirable except:

• A)total costs will be lower for outsources goods or services.
• B)its supplier has more expertise in whatever is being outsourced.
• C)it can maintain tight control over knowledge.
• D)proprietary information will be disclosed to the supplier.
• E)control over operations will be maintained by the firm.

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Definitions:

Accountant

A professional who performs accounting functions such as audits or financial statement analysis according to established standards.

Underwriter

A person or company that evaluates and assumes the risk of another party, such as in insurance or securities, in exchange for a premium or commission.

Section 11

In legal terms, it often refers to a specific section of a statute or act, which may detail certain rights, obligations, or regulations; context is required to identify the exact law it pertains to.

Securities Act

Refers to the Securities Act of 1933, a U.S. law enacted as a result of the stock market crash of 1929, aimed at regulating the securities industry and ensuring transparency in financial statements so investors can make informed decisions.