How are outsourcing and vertical integration related? Can a single firm successfully do both?
What will be an ideal response?
Outsourcing transfers what were traditional internal activities to outside vendors. It is a way of increasing specialization which allows the firm to focus on its core strengths, and not try to do all possible tasks. Vertical integration is much the opposite, decreasing a firm's specialization so that it can perform additional functions along its supply chain. Vertical integration has become increasingly difficult in the face of increasing specialization. It seems unlikely that firms that make significant use of outsourcing would do much vertical integration, but it is possible that a firm's set of competitive advantages would support outsourcing in some functions and vertical integration in others.
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Monique argues that posting drinking pictures on social media sites such as Facebook can lead to decreased job opportunities. Her argument related to posting inappropriate pictures and fewer job opportunities is an example of ______.
a. causation b. correlation c. mediation d. definition
A corporation is a legal entity created by federal law
Indicate whether the statement is true or false
?Which of the following statements is true of a project with a positive net present value (NPV)?
A. ?The project's internal rate of return is less than the expected rate of return. B. ?The project has multiple internal rates of return. C. ?The project's terminal value is less than the future value of the initial investment in the project. D. ?The project's initial investment is recovered on a present value basis prior to the end of the project's useful life. E. ?The present value of project's cash inflows and multiple cash outflows discounted at internal rate of return are equal.
The true owner(s) of the corporation is (are) the ________
A) board of directors B) chief executive officer C) stockholders D) creditors