Which of the Following Is a Challenge Associated with an Outsourcing

question 86

Multiple Choice

Which of the following is a challenge associated with an outsourcing strategy?

• A) Labor shortage
• B) Increased cost
• C) Quality-control problems
• D) Lack of necessary technology
• E) Diseconomies of scale

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Definitions:

Simple Rate Of Return

A calculation that measures the percentage return on an investment or project, not accounting for the complexity of interest compounding.

Cash Operating Expenses

Expenses that a company pays out in cash during an operational period, including salaries, utilities, and rent, but excluding non-cash expenses like depreciation.

Annual Depreciation

The allocation of an asset's cost over its useful life, representing how much of an asset's value has been used up during a fiscal year.

Simple Rate Of Return

A straightforward method of calculating the return on investment by dividing annual incremental net operating income by the initial investment cost.