Which of the Following Statements Is True of Outsourcing

question 62

Multiple Choice

Which of the following statements is true of outsourcing?

• A) It reduces economic risk by facilitating the purchase of large insurance policies.
• B) It reduces production risk by eliminating delays in the timely receipt of needed parts.
• C) It reduces political risk by enabling the company to avoid investing in plants and equipment abroad.
• D) It reduces currency risk by allowing the company to invest the home currency on in-house production facilities.

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Definitions:

Establishment Of Responsibility

An accounting principle that ensures specific duties are assigned to individuals to increase accountability and prevent errors and fraud.

Treasurer

A treasurer is an officer of a company or organization responsible for managing financial operations, including investment, risk management, and corporate finance.

Establishment Of Responsibility

An internal control principle aiming to assign specific responsibilities to individuals, thus ensuring accountability and reducing the risk of errors and fraud.

Cashier Department Supervisors

These are managers responsible for overseeing the operation of cashiers and related transactions within a retail or service environment, ensuring accuracy and customer satisfaction.