Describe the benefits and challenges of outsourcing.
What will be an ideal response?
Competitive edge - effective and innovative use of IT can be lost when using an outsourcing service
provider. Confidentiality - confidential information might be breached by an outsourcing service provider,
especially one that provides services to competitors. Scope definition - scope creep is a common problem
with outsourcing agreements. Contract length - most outsourcing contracts span several years and cause
the issues discussed above. Contract length has three main issues (1) difficulties in getting out of a
contract, (2) problems in foreseeing future needs, (3) problems in reforming an internal IT department
after the contract is finished.
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An importer of computers is required to pay a duty to the government of $100 per computer regardless of the price of the computer. Which type of tariff is described in this example?
a. tariff quota b. compound tariff c. specific tariff d. ad valorem tariff
The current ratio is computed by dividing current liabilities by current assets.
Answer the following statement true (T) or false (F)
A Treasury bill is a near-cash asset
Indicate whether the statement is true or false
When a person contracts for improvements on real property but does not immediately pay for the improvements, the creditor can place a mechanic's lien on the property.
Answer the following statement true (T) or false (F)