Which of the Following Is True About Outsourcing

question 63

Multiple Choice

Which of the following is true about outsourcing?

• A)It increases budgetary instability due to the level of risk involved.
• B)It saves both direct and indirect management time.
• C)It creates diseconomies of scale.
• D)It guarantees a higher level of quality than that provided in-house.

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Definitions:

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.

Organizational

Pertaining to the structure and functioning of an organization, including its systems, processes, and dynamics.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals efficiently and effectively.

Human

Referring to a member of the species Homo sapiens, characterized by the capacity for language, rationality, and complex social structures.