The Many Benefits Associated with Outsourcing Include Which of the Following

question 62

Multiple Choice

The many benefits associated with outsourcing include which of the following?

• A) Increased quality and efficiency of a process, service, or function.
• B) Reduced operating expenses.
• C) Avoiding costly outlay of capital funds.
• D) All are benefits associated with outsourcing.

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Definitions:

Profitability Index

A financial tool used to evaluate the attractiveness of an investment by dividing the present value of future cash flows by the initial investment cost.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Required Return

The lowest profit anticipated by an investor from a specific asset or project investment.

Profitability Index

A financial metric that calculates the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.