Which of the Following Is Not a Potential Benefit of Outsourcing

question 64

Multiple Choice

Which of the following is not a potential benefit of outsourcing?

• A) Concentrating scarce human, financial, and physical resources to strengthen core competencies
• B) Gaining the benefit of the specialist companies expertise in a specialized skill
• C) Reducing the need for horizontal integration
• D) Reducing costs, because the supplier may be more efficient
• E) Enhancing differentiation

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Definitions:

Acquisition of Fixed Assets

The process of obtaining physical assets that are expected to be used in producing goods or services for a period longer than one fiscal year.

Notes Payable

Short or long-term financial obligations represented by promissory notes that a business owes and has promised to pay by a certain date.

Common Stock

Equity securities that represent ownership shares in a company, providing voting rights and potential dividends to shareholders.

Days' Sales in Inventory

A financial metric indicating the average number of days a company takes to sell its inventory.