Why Might Outsourcing Cause Employee Resistance

question 1

Multiple Choice

Why might outsourcing cause employee resistance?

• A)Outsourcing often allows a company to better use its assets and scarce resources.
• B)Outsourcing can lower a company's overall IS costs.
• C)Outsourcing often facilitates downsizing.
• D)Outsourcing helps eliminate the peaks and valleys of system usage.

---

Definitions:

Special Purpose Entity

A legal entity created for a specific project or objective, often used to isolate financial risk.

Canadian GAAP

Canadian Generally Accepted Accounting Principles, a set of accounting standards used in Canada to ensure financial statements are consistent and transparent.

Primary Beneficiary

The entity that has the majority of risks and rewards from a variable interest entity, leading to the requirement of consolidating the entity's financial statements.

Amortization

The gradual reduction of a debt over a period of time through regular payments or the systematic allocation of intangible asset costs over its useful life.