Answer: The correct option is A. when internal control over a particular activity is deemed essential.
Explanation: Outsourcing is the business practice in which there is an agreement between two companies, where company A hires company B to help perform some tasks, oversee operations, or provide services. These activities could range from those that have been previously carried out by company A to a new planned activity, and it could also involve the transfer of employees and assets from company A to company B.
The benefits if outsourcing include:
- helps to focus on core tasks.
- helps to lower costs as more employees need not be hired.
- helps to grant access to a larger talent pool and expertise.
However, one quality of outsourcing is that the hired company gets to exercise a level of control or autonomy, meaning that the hired company was actually hired to oversee a particular activity.
Therefore if an activity now requires the total control of the hiring company, then there would be no need for hiring an outsourcing firm. In this situation therefore, it would be a waste of resources to hire an outsourcing firm, and in summary it would not be beneficial.
Answer:
The correct answer is C. Common fixed costs.
Explanation:
A fixed cost is an expense that the company must incur, even if the company operates at medium speed, or does not, which is why they are so important in the financial structure of any company.
This is the case, for example, of payments such as leasing, since this, if nothing is sold, must be paid. It also happens with almost all labor payments, public services, insurance, etc.
Perhaps the main component of fixed costs is labor, therefore, it is not surprising that companies struggle every day for greater labor flexibility that allows them to convert those fixed costs into variables.
The appropriate response is a moral hazard, it happens when one individual goes for broke in light of the fact that another person bears the cost of those dangers. An ethical peril may happen where the activities of one gathering may change to the impairment of another after a budgetary exchange has occurred.