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List and Briefly Explain Three Risks Associated with Outsourcing

question 50

Essay

List and briefly explain three risks associated with outsourcing.


Definitions:

Raw Materials

The basic materials and substances that are used in the initial stages of production and manufacturing.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Book Value Per Share

A financial measure that indicates the value of a company's equity as represented in its shares, calculated by dividing total shareholders' equity by the number of outstanding shares.

Market Price

The current price at which an asset or service can be bought or sold.

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