Which of the Following Represent Risks Associated with Outsourcing

question 12

Multiple Choice

Which of the following represent risks associated with outsourcing?

• A) Loss of control and poor-quality work
• B) Security and privacy problems
• C) Hidden costs and lack of standards
• D) Unmet expectations and bad publicity
• E) All of the above

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Definitions:

Circular Flow Model

A diagram that demonstrates the movement of money, resources, and goods and services in an economy between households, firms, and the government.

Resource Markets

Marketplaces where resources (like labor, capital, and raw materials) used to produce goods and services are bought and sold.

Invisible Hand

A metaphor coined by Adam Smith to describe the self-regulating nature of the marketplace where individuals' pursuit of self-interest benefits society.

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.