Explain how the benefits of outsourcing are outweighed by its long-term costs
What will be an ideal response?
Outsourcing can appear too good to be true. Some of the benefits of outsourcing that are outweighed by its long-term costs are:
• High unit cost, forever—Although a fixed cost does indeed cap exposure, it also removes the benefits of economies of scale.
• Paying for someone else's mismanagement—An organization can find itself paying for another organization's mismanagement or may suffer the consequences of poor management, such as lost data.
• In time, outsource vendor is de facto sole source—The outsource vendor may change its pricing strategy over time. Initially, an organization obtains a competitive bid from several outsource vendors. However, as the winning vendor learns more about the business and as relationships develop between the organization's employees and those of the vendor, it becomes difficult for other firms to compete for subsequent contracts. The vendor becomes the de facto sole source and, with little competitive pressure, might increase its prices.
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Using the following transactions, calculate (a) net income for the period, as well as the ending balances of (b) total assets, (c) total liabilities, and (d) Cash
a. Opened business by issuing common stock for $36,000. b. Paid one year's insurance in advance, $2,400. c. Billed customers for services rendered, $6,000. d. Received utility bill, to be paid next month, $400. e. Received $800 in advance of performing a service. f. Received $4,400 from customers billed in c. g. Paid $300 on the utility bill of d. h. Dividends of $2,000 were declared and paid.
A speaker who ______ an audience is usually perceived more positively than one who ______.
a. leans away from; leans toward b. leans toward; leans away from c. stands upright to; leans toward d. leans away from; stands upright to
A study found that subordinates perceived well-connected leaders to have ________ and ____________
a. ego problems and a lack of concern for subordinates’ welfare b. higher status and a better reputation throughout the organization c. faster promotions and short-term thinking that created long-term performance problems d. a polished image and lack of substance
In most instances, an agency is not required to obtain a search warrant before a physical search for evidence is conducted.
Answer the following statement true (T) or false (F)