Which of Following Is a Firm's Risk of Outsourcing the Production

question 39

Multiple Choice

Which of following is a firm's risk of outsourcing the production of a part?

• A) fluctuation in the manufacturing costs
• B) leakage of intellectual property
• C) increased need of skilled workers
• D) scarcity of indirect labor

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Definitions:

Common Stock

The stock outstanding when a corporation has issued only one class of stock.

Dividend Yield

A ratio, computed by dividing the annual dividends paid per share of common stock by the market price per share at a specific date, that indicates the rate of return to stockholders in terms of cash dividend distributions.

Par Value

A dollar amount assigned to each share of stock.

Unusual Items

Non-recurring or rare expenses or revenues that are not expected to happen regularly and are outside the ordinary activities of a business.