Which of the Following Statements Is True of Outsourcing

question 2

Multiple Choice

Which of the following statements is true of outsourcing?

• A)Management should have expertise on a subject before it can decide to outsource.
• B)An outsource vendor transfers the responsibility of risk management to the development group.
• C)To achieve quality, it is easier to hire another vendor than it is to fire and rehire internal staff.
• D)Outsourcing leads to increased financial risk.

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Definitions:

General Partnership

A business arrangement where two or more individuals share ownership, as well as the profits, liabilities, and management duties.

Formality

Specific procedures or ceremonial acts required by tradition, law, or other authority to validate acts, documents, or agreements.

Limited Liability

A legal principle that protects an owner or investor's personal assets from being used to satisfy business debts or claims.

RUPA

The Revised Uniform Partnership Act, which governs the operation of partnerships in the United States.