Which of the Following Observations Is True of Taking the Services

question 7

Multiple Choice

Which of the following observations is true of taking the services of independent contractors?

• A) Core competencies can be effectively outsourced to contractors.
• B) The company is not supposed to directly supervise the contractors.
• C) It is a relatively slow process with low revocability.
• D) The organization can achieve increased quality though the costs are more.
• E) It provides an organization increased control over the operations.

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Definitions:

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unattainable.

Administrative Cost

Refers to expenses related to the general operation of a business, including office supplies, management salaries, and other non-production related costs.

Equilibrium Pricing

The point at which the supply of a product matches demand, setting the market price.

Deadweight Loss

A loss in economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.