When Large U

question 22

Multiple Choice

When large U.S.software companies like IBM and Microsoft open facilities in India to take advantage of the highly skilled labor available there at lower pay rates,they are engaging in:

• A) consolidation.
• B) nationalization.
• C) crowdsourcing.
• D) codetermining
• E) offshoring.

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Definitions:

Service Departments

Units within a company that provide support services to other departments but do not directly generate revenue.

Operating Departments

Divisions or units within an organization directly involved in its core business activities, responsible for producing the goods or services it offers.

Income Statements

Reports that detail the revenue, expenses, and profitability of a company over a defined accounting period, showing its financial performance.

Service Departments

Units within an organization that provide support services to other departments, rather than producing goods or services for external customers.