Although Outsourcing Does Offer the Benefit of Capping Exposure Through

question 30

Multiple Choice

Although outsourcing does offer the benefit of capping exposure through fixed costs,it also removes the benefits of ________.

• A) time saving
• B) obtaining expertise
• C) risk reduction
• D) economies of scale

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Definitions:

Sunk Costs

Permanent losses of resources incurred as the result of a decision.

Economic Considerations

The factors related to the financial implications of decisions, including costs, benefits, and the overall impact on financial health.

Perceptual Defence

A psychological mechanism that prevents individuals from consciously perceiving disturbing or threatening stimuli.

Functional Specialty

An area within a profession or field where individuals possess specific skills, knowledge, and expertise, distinguishing them from others within the same broad discipline.