Which One of the Following Statements Is True of Outsourcing

question 181

Multiple Choice

Which one of the following statements is true of outsourcing?

• A)Outsourcing tends to increase operational and recruitment costs.
• B)Outsourcing has no effect on a company's efficiency.
• C)In outsourcing,in-house professionals are hired to perform tasks.
• D)Outsourcing involves the free exchange of services and resources between organizations in the same country.
• E)Outsourcing involves buying professional services outside the firm.

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Definitions:

Consumption

The use of goods and services by households, often considered as an economic indicator reflecting the level of consumer spending.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated as the total tax paid divided by the taxable income.

State Tax

Taxes imposed by individual states on income, property, goods, and services within their jurisdiction.

Federal Tax

The tax levied by the national government on income, sales, gifts, and other transactions.