When Considering Outsourcing,what Should Firms Be Sure to Avoid

question 57

Multiple Choice

When considering outsourcing,what should firms be sure to avoid?

• A)Losing control of non-core activities which don't distinguish the firm
• B)Allowing outsourcing to develop into a substitute for innovation
• C)Giving the outsourcing partner the opportunity to become a strong competitor
• D)Allowing employees transferred to the outsourcing partner to rejoin the firm
• E)Adverse corporate tax implications of asset transfers to the outsourcing partner

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Definitions:

Sales Units

The quantity of items or services sold by a business within a specific period.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets.

Current Portion

The part of long-term debt that is due within the next 12 months.

Long-Term Debt

Financial obligations of a business that are due for repayment in more than one year, such as bonds, mortgages, and long-term loans.