Which of the Following Statements About Outsourcing Is False

question 43

Multiple Choice

Which of the following statements about outsourcing is false?

• A)Increasingly,organizations are leveraging existing global cloud infrastructures from companies such as Amazon and Google.
• B)Established companies are less willing to outsource company-critical functions in an effort to reduce costs.
• C)New start-up companies typically outsource and rely on SaaS to avoid upfront IT costs.
• D)Outsourcing companies have started to offer interesting new business models and services around cloud computing.

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Definitions:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Perfectly Competitive Market

A market structure characterized by a large number of buyers and sellers, homogeneous products, and easy entry and exit, leading to price-taking behavior.

Variable Costs

Costs that vary directly with the level of output or business activity, such as materials and labor.

Revenues

The total income produced by a company from its activities, before any expenses are subtracted.