Which of the Following Does NOT Support the Notion of Outsourcing

question 42

Multiple Choice

Which of the following does NOT support the notion of outsourcing some human resource functions to third-party service providers?

• A) It provides internal staff with a better sense of issues facing employees.
• B) It reduces costs.
• C) It leverages the specialized knowledge of external experts.
• D) It allows internal staff to focus on strategic human resource activities.

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Definitions:

Market Price

The going rate at which a particular market offers to buy or sell an asset or service.

Average Revenue

The revenue earned per unit of output sold; calculated by dividing the total revenue by the number of units sold.

Total Revenue

The total amount of money received by a firm from selling its goods or services.

Total Cost

The complete amount of money required for the production of a given level of output, including both fixed and variable costs.