Which of the Following Statements Is True About Outsourcing

question 52

Multiple Choice

Which of the following statements is true about outsourcing?

• A)It increases budgetary instability due to the level of risk involved.
• B)It saves both direct and indirect management time.
• C)It invariably leads to diseconomies of scale.
• D)It guarantees a higher level of quality than that provided in-house.

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Definitions:

Public Saving

The difference between government tax revenues and government spending. If positive, it indicates a budget surplus; if negative, a deficit.

Bonds

Bonds are fixed-income securities that represent loans made by an investor to a borrower, typically corporate or governmental, which must be repaid with interest.

Stocks

Financial instruments that signify ownership in a company and represent a claim on part of the company's assets and earnings.

Government Borrowing

The process by which governments finance their expenditure by accruing debt through issuing securities like government bonds and bills.