When Considering Outsourcing, What Should Firms Be Sure to Avoid

question 51

Multiple Choice

When considering outsourcing, what should firms be sure to avoid?

• A)Losing control of noncore activities that don't distinguish the firm
• B)Allowing outsourcing to develop into a substitute for innovation
• C)Giving the outsourcing partner opportunities to become a strong competitor
• D)Allowing employees transferred to the outsourcing partner to rejoin the firm
• E)Adverse corporate tax implications of asset transfers to the outsourcing partner

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Definitions:

Simple Random Sample

A subset of individuals chosen from a larger set, where each individual has an equal probability of being selected.

Standard Deviation

The statistical measure that quantifies the dispersion or spread of a dataset relative to its mean.

Correction Factor

An adjustment applied to calculations to take into account changing conditions or to improve accuracy.

Population

The entire group of individuals or items that are the subject of a statistical study.