Which of the Following Statements Is True of Outsourcing

Multiple Choice

Which of the following statements is True of outsourcing?

A) Management should have expertise on a subject before it can decide to outsource.
B) An outsource vendor transfers the responsibility of risk management to the development group.
C) To achieve quality, it is easier to hire another vendor than it is to fire and rehire internal staff.
D) Outsourcing leads to increased financial risk.
E) There is little risk of losing intellectual capital.