Outsourcing

question 44

Multiple Choice

Outsourcing:

• A) eliminates the need for a value chain.
• B) reduces the firm's dependence on its value chain.
• C) reorders the steps in a firm's value chain.
• D) moves some value chain activities outside the firm.
• E) strengthens the firm's capabilities in each value chain function.

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Definitions:

Capital Contribution

Funds or assets provided by partners or shareholders to increase the capital of a company or partnership.

Share Losses

The financial reductions in value or earnings experienced by shareholders as a result of a decrease in the price or profitability of the shares.

Partnership Agreement

A contract between partners in a partnership, detailing the terms of the relationship, distribution of profits, and the management of the partnership.

Partnership Losses

Financial setbacks attributed to the operational or investment activities of a partnership that are shared among the partners according to their agreement.