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:

Job Descriptions

Detailed information about a specific job, including responsibilities, requirements, and qualifications.

Work Flow Analysis

The study of the business processes and activities involved in completing a specific task or project to increase efficiency.

Work Processes

The sequence of tasks or activities that are undertaken in the pursuit of achieving a work-related goal or producing a specific outcome.

Inputs

The resources, information, or materials used in a process to produce outputs.