Which of the Following Is Not a Strategic Risk of Outsourcing

question 82

Multiple Choice

Which of the following is not a strategic risk of outsourcing?

• A) loss of critical skills
• B) loss of cross-functional skills
• C) loss of control over a supplier
• D) loss of nonvital functions

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Definitions:

Acquisition-Date Fair Value

The market value of an asset or liability at the exact date an acquisition is completed, used for accounting purposes.

Noncontrolling Interest

The portion of equity in a subsidiary not attributable, directly or indirectly, to a parent company.

Net Income

A company's final profit after total revenue has had taxes, costs, and other expenses removed.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specified period, showing how the revenue is transformed into net income.