Question 1

There is no easy exit from an outsourcing agreement.

Accepted Answer

A) True 
 B)False  True

Question 2

Outsourcing does not offer the hiring company an easy exit from the agreement with the vendor.Why?

Accepted Answer

The hiring company has no easy exit from an outsourcing agreement,because,for one,the outsource vendor's employees have gained significant knowledge of the company.Consequently,lack of knowledge will make it difficult to bring the outsourced service back in-house.Also,because the vendor has become so tightly integrated into the business,parting company can be exceedingly risky.Because of such risk,the company must invest considerable work,duplication of effort,management time,and expense to change to another vendor.

Question 3

Which of the following is an advantage of outsourcing?

Accepted Answer

A)  It allows the organization greater control. 
B)  It helps ensure a certain level of quality. 
C)  It guarantees quality and risk reduction. 
D)  It allows for an easy exit. 
A)  It allows the organization greater control. 
B)  It helps ensure a certain level of quality. 
C)  It guarantees quality and risk reduction. 
D)  It allows for an easy exit. B

Question 4

A Web storefront is a form of outsourcing an entire business function.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an advantage of outsourcing?

Accepted Answer

A)  It allows the organization greater control. 
B)  It guarantees quality and risk reduction. 
C)  It allows for an easy exit. 
D)  It caps the organization's financial risk. 
A)  It allows the organization greater control. 
B)  It guarantees quality and risk reduction. 
C)  It allows for an easy exit. 
D)  It caps the organization's financial risk.

Question 6

Although the fixed cost achieved through outsourcing does cap exposure,it also removes the benefits of economies of scale.

Accepted Answer

A) True 
 B)False

Question 7

Describe in brief the risks related to the loss of control that may result from outsourcing.

Accepted Answer

Some of the loss of control risks are as

Question 8

Just about any business activity in the value chain-from marketing and sales to logistics,manufacturing,and customer service-can be outsourced.

Accepted Answer

A) True 
 B)False

Question 9

Outsourcing,by definition,refers to the use of a foreign vendor.

Accepted Answer

A) True 
 B)False

Question 10

In time,there is a risk that the outsource vendor will become the de facto sole source for the company.

Accepted Answer

A) True 
 B)False

Question 11

The outsource vendor is usually forbidden by the contract to change direction or the management team working with the organization.

Accepted Answer

A) True 
 B)False

Question 12

Acquiring licensed software is a form of outsourcing.

Accepted Answer

A) True 
 B)False

Question 13

What are the popular outsourcing alternatives?

Accepted Answer

Organizations have found hundreds of dif

Question 14

Which of the following is an advantage of outsourcing?

Accepted Answer

A)  It allows the organization greater control. 
B)  It guarantees quality and risk reduction. 
C)  It can be an easy way to gain expertise. 
D)  It allows for an easy exit. 
A)  It allows the organization greater control. 
B)  It guarantees quality and risk reduction. 
C)  It can be an easy way to gain expertise. 
D)  It allows for an easy exit.

Question 15

Acquiring licensed software increases costs for all users.

Accepted Answer

A) True 
 B)False

Question 16

Flashlight Films has outsourced its internet and social media marketing campaigns.This is an example of how companies can outsource ________.

Accepted Answer

A)  computer hardware 
B)  computer software 
C)  entire applications 
D)  entire business functions 
A)  computer hardware 
B)  computer software 
C)  entire applications 
D)  entire business functions

Question 17

Which of the following is a disadvantage of outsourcing?

Accepted Answer

A)  loss of control 
B)  inability to ensure a certain level of quality 
C)  takes up too much management time 
D)  high implementation risk 
A)  loss of control 
B)  inability to ensure a certain level of quality 
C)  takes up too much management time 
D)  high implementation risk

Question 18

Due to the benefits of specialization,it is guaranteed that outsourcing will provide a level of quality higher than what could be achieved in-house.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a disadvantage of outsourcing?

Accepted Answer

A)  It results in high implementation risk. 
B)  It makes it impossible for the company to ensure a certain level of quality. 
C)  It could result in the CIO becoming superfluous. 
D)  It takes up too much management time. 
A)  It results in high implementation risk. 
B)  It makes it impossible for the company to ensure a certain level of quality. 
C)  It could result in the CIO becoming superfluous. 
D)  It takes up too much management time.

Question 20

Outsourcing ________.

Accepted Answer

A)  allows the organization greater control 
B)  guarantees quality and risk reduction 
C)  allows companies to obtain part-time services 
D)  allows for an easy exit 
A)  allows the organization greater control 
B)  guarantees quality and risk reduction 
C)  allows companies to obtain part-time services 
D)  allows for an easy exit

Exam 32: Outsourcing

There is no easy exit from an outsourcing agreement.

Outsourcing does not offer the hiring company an easy exit from the agreement with the vendor.Why?

Which of the following is an advantage of outsourcing?

A Web storefront is a form of outsourcing an entire business function.

Which of the following is an advantage of outsourcing?

Although the fixed cost achieved through outsourcing does cap exposure,it also removes the benefits of economies of scale.

Describe in brief the risks related to the loss of control that may result from outsourcing.

Just about any business activity in the value chain-from marketing and sales to logistics,manufacturing,and customer service-can be outsourced.

Outsourcing,by definition,refers to the use of a foreign vendor.

In time,there is a risk that the outsource vendor will become the de facto sole source for the company.

The outsource vendor is usually forbidden by the contract to change direction or the management team working with the organization.

Acquiring licensed software is a form of outsourcing.

What are the popular outsourcing alternatives?

Which of the following is an advantage of outsourcing?

Acquiring licensed software increases costs for all users.

Flashlight Films has outsourced its internet and social media marketing campaigns.This is an example of how companies can outsource ________.

Which of the following is a disadvantage of outsourcing?

Due to the benefits of specialization,it is guaranteed that outsourcing will provide a level of quality higher than what could be achieved in-house.

Which of the following is a disadvantage of outsourcing?

Outsourcing ________.

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