Which of the Following Is an Organizationally Driven Reason for Outsourcing

question 56

Multiple Choice

Which of the following is an organizationally driven reason for outsourcing?

• A) Improve effectiveness by focusing on what the firm does best.
• B) Turn fixed costs into variable costs.
• C) Reduce costs through lowered cost structure and increased flexibility.
• D) Improve risk management.
• E) Improve credibility and image by associating with superior providers.

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Definitions:

Merger

The combination of two or more companies into a new entity, often aiming to achieve more efficiency or market share.

Fair Market Value

The price that a willing buyer and a willing seller would agree upon, given both parties have reasonable knowledge of the asset’s particulars.

Purchase Method

An accounting approach used to consolidate the financial statements of a buyer and a target company after an acquisition.