Some Organizations Use Internal Service Departments to Provide Like Services

question 20

Multiple Choice

Some organizations use internal service departments to provide like services to several divisions or departments within an organization. Which of the following would probably not lend itself as a service department?

• A) inventory control
• B) payroll accounting
• C) information systems
• D) human resources

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Definitions:

Outsourcing

The practice of hiring external organizations or individuals to perform services or create goods that traditionally were performed in-house by the company's own employees and staff.

Risks

The potential for losing something of value or the possibility of an adverse outcome resulting from a given action, activity, or decision.

Outsourcing

The practice of hiring third parties to perform services or produce goods that were previously handled in-house, typically to cut costs and improve efficiency.

Outsourced Service

A business practice where a company hires another organization to perform services, handle operations, or provide services that are either difficult to manage or are outside the company's expertise.