How Does Outsourcing Improve an Organization's Utilization of Assets

question 51

Multiple Choice

How does outsourcing improve an organization's utilization of assets?

• A)By allowing a company to eliminate its IS department,which will reduce its payroll costs.
• B)By allowing the company to sell assets to outsourcers and improve their cash position.
• C)By eliminating the expense of keeping up with the latest technology and,thus,eliminate the drain on cash reserves.
• D)Both B and C above are correct.

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Definitions:

Induced Consumption

The portion of spending by households that increases with their income, demonstrating how consumer spending is influenced by changes in income.

Autonomous C

Consumer spending that does not depend on current income, influenced by factors like confidence and wealth, key for understanding economic fluctuations.

Induced C

Refers to the consumption that varies with income levels; as income increases, so does the consumption level.

Autonomous Consumption

the level of consumption that occurs when income is zero, representing the expenditures necessary to meet basic needs.