Which of the Following Is an Example of Outsourcing an Entire

question 70

Multiple Choice

Which of the following is an example of outsourcing an entire business function?

• A) acquiring licensed security software instead of developing it in-house
• B) making customizations to licensed software
• C) paying another organization to arrange for employee travel
• D) acquiring virtualization technologies
• E) buying new hardware the reduces internal labor costs

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Definitions:

Productive Efficiency

A situation where goods or services are produced at the lowest possible cost, utilizing resources in the best way possible without waste.

Equilibrium Price

The price at which the quantity of goods demanded is equal to the quantity of goods supplied, resulting in a stable market condition.

Surpluses

Surpluses occur when the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Market Prices

The current prices at which goods and services can be bought or sold in a marketplace.