Qualitative Factors That Should Be Assessed When Making an Insourcing/outsourcing

question 30

Multiple Choice

Qualitative factors that should be assessed when making an insourcing/outsourcing decision include all of the following EXCEPT:

• A)Compatibility of the supplier's organizational culture and values with your company
• B)The importance assigned to the supplier's location
• C)The skills and knowledge of the supplier's management team
• D)The costs incurred at the start of the contract

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Definitions:

High-Beta Stock

Stocks that have a higher volatility compared to the market, often experiencing larger fluctuations in price than the overall market.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Investor Sentiment

The overall attitude of investors towards a particular security or financial market, which can influence trading decisions and market movements.

Efficient Frontier

The efficient frontier is a concept in modern portfolio theory representing those portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.