Question

Outsourcing provides many advantages to a company. Which of the following is not an advantage? Group...

Outsourcing provides many advantages to a company. Which of the following is not an advantage?

Group of answer choices

Reduced capital investment

Focus on core competencies

Quick response to changes in technology

Reduced flexibility in sourcing

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Answer #1

Reduces capital investment

Outsourcing will convert all the fixed cost into the variable cost that will release capital for investment. It doesn't reduces capital investment.

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