A Company May Consider Outsourcing If It Feels That Its

question 27

True/False

A company may consider outsourcing if it feels that its core mission does not involve managing an information systems unit and that it might achieve more effective computing by turning over all of its operations to a more experienced,computer-oriented company.

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Definitions:

Net Investment

The total amount of money spent on capital assets, minus depreciation. It reflects the increase in a company's or nation's capital stock.

Inventory Investment

Refers to the changes in the stock of goods that a company holds over a period, aiming to meet future sales demands or price changes.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Gross Investment

The total amount of money spent on capital goods, or assets that will provide productive capacity for the future, without deducting for depreciation.