Which of the Following Statements About Outsourcing and Offshoring Is

question 23

Multiple Choice

 Which of the following statements about outsourcing and offshoring is true?

• A) Offshoring guarantees higher profits for a business.
• B) Managers always account for the risks in offshoring a process.
• C) Outsourcing is not a complicated issue.
• D) Offshoring is used to lower costs in a firm's value chain.

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Definitions:

Fair Values

An estimate of the market value of an asset or liability, based on assumptions of what market participants would use in an orderly transaction at the measurement date.

Common Stock

A type of equity security that represents ownership in a corporation, providing rights to vote on corporate matters and receive dividends.

Acquisition

Acquisition involves purchasing all or a substantial portion of the assets or ownership stakes of a company, effectively bringing it under the control of the acquiring entity.

Consolidated Common Stock

Represents the aggregation of common stock of a parent company and its subsidiaries, shown in the consolidated financial statements.