Hydrus Corp

question 61

Multiple Choice

Hydrus Corp. contracted most of its business processes to various other companies. This helped the company generate immediate profits, but Hydrus was losing competitive advantage over its rivals in the long run due to its lack of innovation. Which of the following is a danger of outsourcing that Hydrus Corp. experienced?

• A)Lack of control
• B)Loss of capabilities
• C)Lack of focus
• D)Loss of technology

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Definitions:

Revenue Per Employee

A measure of the efficiency of the business in generating revenues, which is computed as revenue divided by number of employees.

LLC Members

Individuals or entities that own a portion of a Limited Liability Company (LLC) and have rights and responsibilities as outlined in the LLC's operating agreement.

Business Expansion

The process by which a company increases its size, operations, or market reach, often through investments in new facilities, acquisitions, or increasing workforce.

Revenue Per Employee

A financial metric indicating how much revenue each employee generates for the business, often used to assess efficiency and productivity.