How Does Outsourcing Improve an Organization's Utilization of Assets

question 92

Multiple Choice

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

• A) by allowing a company to completely 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.

Recognize the importance and benefits of ethical behavior in business.

Identify characteristics that affect persuasion and their implications.

Comprehend the relationship between job satisfaction and organizational behavior.

Explain cognitive dissonance and its effects on individuals.

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Definitions:

Straight-Line Depreciation

A method of evenly distributing the cost of an asset over its useful life.

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life, indicating what a company expects to recover or sell the asset for.

Depreciation Expense

The calculated apportionment of the price of a tangible asset over the duration it is useful.