Which of the Following Is a Risk of Outsourcing IS/IT

question 56

Multiple Choice

Which of the following is a risk of outsourcing IS/IT functions?

• A)It gives undue authority to the CIO in the executive team.
• B)It provides the hiring organization with too many choices.
• C)It involves the potential loss of intellectual capital.
• D)It enables the vendor to gain economies of scale.

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Definitions:

Expected Rate of Return

The anticipated return on an investment, considering both the probability and the amount of potential returns.

Total Investment

The sum of all expenditures on physical assets, financial assets, and other types of investments within a specified period.

Expected Rate of Return

The anticipated percentage of gain or loss that an investment is projected to generate over a specified period, accounting for all known risks.

Total Investment

The sum of all expenditures on capital assets, such as buildings, equipment, and inventories, over a specific period.