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:

Compensating Differential

Additional payment or benefit given to an employee to offset or compensate for undesirable aspects of a job.

Base Pay

The initial rate of compensation that an employee receives before any bonuses, benefits, or raises are added.

Skill

The ability, coming from one's knowledge, practice, aptitude, etc., to do something well.

Prestigious

Associated with high status, esteem, or importance.