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:

Energy Consumption

The amount of energy used by devices, systems, or processes, typically measured over a specific time frame.

Energy Information Administration

A U.S. Government agency responsible for collecting, analyzing, and distributing energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment.

Energy Storage Problem

Refers to the challenge of capturing energy produced at one time for use at a later time, important for renewable energy sources that don't produce power continuously.

Wind Turbines

Mechanical devices that convert wind energy into electrical energy.