Outsourcing Value Chain Activities Has Such Strategy-Executing Advantages as

question 19

Multiple Choice

Outsourcing value chain activities has such strategy-executing advantages as

• A) less internal bureaucracy, speedier decision-making, quicker responses to changing market conditions, and heightened focus on performing a select few value chain activities (which can improve performance of those activities).
• B) facilitating the empowerment of employees (because there are less things to do internally).
• C) promoting a total quality management culture.
• D) reducing the need to establish a strongly implanted corporate culture.
• E) reducing the strategic importance of building valuable core competencies.

Identify factors that can cause shifts in supply and demand curves.

Analyze the impact of cost changes on supply and demand.

Understand the concept of market equilibrium and how it is achieved.

Analyze the effects of government policies on market supply and demand.

---

Definitions:

Bad Debts Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on payments.

Direct Write-off Method

A method where uncollectible accounts receivable are written off directly against income at the time they are deemed to be uncollectible.

Uncollectible Accounts

Accounts receivable deemed uncollectible by a business, representing money owed by customers that is unlikely to be paid and usually written off as an expense.

Expense Recognition Principle

An accounting guideline stating that expenses should be recorded in the same period as the revenues they help to generate.