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:

Pressure Multiplied

A phenomenon in hydraulic systems where force is increased through the use of fluid dynamics and varying cross-sectional areas.

Area

A measure of the extent of a two-dimensional surface or shape, expressed in square units.

Atmospheric Pressure

The pressure exerted by the weight of the atmosphere above a point, affecting weather patterns and boiling temperatures of liquids.

Sea Level

The average height of the ocean's surface between high and low tide; used as a standard base for measuring elevations.