Which of the Following Is the Most Uncommon Reason Why

question 5

Multiple Choice

Which of the following is the most uncommon reason why companies outsource?

• A) Tap outside sources of expertise.
• B) Concentrate resources on core business.
• C) Reduce headcount and related expenses.
• D) Better manage the costs of internal processes.

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Definitions:

Long-Term Investment

Investments in securities or other assets that a company intends to hold for a period exceeding one year to earn revenue or influence business operations.

Unrealized Loss

A decrease in the value of an investment that has not yet been sold for cash.

Trading Investments

Assets that a company holds primarily for the purpose of selling them in the near term to generate income.

Subsidiary Company

A company that is controlled by another company, known as the parent company, through majority ownership or significant influence.