An outsourcing strategy
A. increases a company's risk exposure to changing technology and/or changing buyer preferences.
B. carries the substantial risk of making a company overly dependent on its suppliers.
C. involves farming out certain value chain activities presently performed in-house to outside vendors.
D. is nearly always a more attractive strategic option than merger and acquisition strategies.
E. carries the substantial risk of raising a company's costs.
Answer: C
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Inca Company purchases a call option to hedge an investment of 20,000 shares of Limbaugh Company stock. The option agreement provides that if the prices of a share of Limbaugh Company stock is greater than $30 on October 25, Inca receives the difference (multiplied by 20,000 shares). Alternatively, if the price of the stock is less than $30, the option is worthless and will be allowed to expire
Which of the following statements regarding this call option is correct? a. The call option effectively hedges the investment in the shares of Limbaugh stock. b. The call option is an option to sell Limbaugh Company stock at a fixed price. c. The call option represents a speculative option rather than a hedge. d. Inca could have purchased a put option or a call option to effectively hedge the investment in the shares of Limbaugh stock.
Some critics of affirmative action theorize that that minority students are actually harmed by policies, like affirmative action, that allow them to attend an elite school for which they may lack adequate academic preparation. This theory is called:
a. Mismatch theory b. Anti-affirmative action theory c. Do no harm theory d. Elitism theory
Identify the correct form of the verb in parentheses. Julia (present perfect tense of work) for the company since 2000
In a private, not-for-profit hospital, which fund would record cash and investments which have been restricted by the governing board for acquisitions of equipment and construction of a new hospital addition?
A. The plant replacement and expansion fund. B. The general fund. C. The endowment fund. D. The specific purpose fund.