Which of the Following Statements Is True of Outsourcing

question 96

Multiple Choice

Which of the following statements is True of outsourcing?

• A) Management should have expertise on a subject before it can decide to outsource.
• B) An outsource vendor transfers the responsibility of risk management to the development group.
• C) To achieve quality, it is easier to hire another vendor than it is to fire and rehire internal staff.
• D) Outsourcing leads to increased financial risk.
• E) There is little risk of losing intellectual capital.

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Definitions:

Undue Influence

The improper use of power or trust in a way that deprives a person of free will and substitutes another's objective.

Workpapers

Documentation that records the procedures, tests, and results of an audit, serving as support for the auditor's conclusion.

Appeal

The process of asking a higher court to review and change the decision of a lower court.

Tort of Deceit

A legal claim arising when one party intentionally misrepresents a fact, causing another party to suffer damage as a result of relying on that misrepresentation.