When a Company Uses a Network Structure to Implement Outsourcing

question 36

Multiple Choice

When a company uses a network structure to implement outsourcing,

• A) many firms along the value chain can easily cooperate.
• B) bureaucratic costs are increased.
• C) the cost of the outsourced functions increases.
• D) organizational culture is an important control mechanism.
• E) many firms along the value chain can easily cooperate and bureaucratic costs are increased.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit customers, calculated by dividing net credit sales by average accounts receivable.

Days' Sales In Receivables

A financial ratio that measures the average number of days it takes for a company to collect payments from its credit sales.

Price-Earnings Ratio

A financial ratio that measures a company's share price relative to its earnings per share, indicating investor expectations of growth and profitability.

Management Discussion And Analysis

A section in an annual report where management provides insight and perspective on the financial results, trends, and future outlook of the company.