BUSI 313 Final Exam Questions with
complete solution 2026
What is outsourcing? - correct answer ✔contracting for the use of external sources (skills) to assist in
implementing a project
What are 4 advantages of outsourcing? - correct answer ✔1. cost reduction
2. faster project completion
3. high level of expertise (focus on developing core competencies)
4. flexibility (no longer constrained by own resources)
What are 4 disadvantages of outsourcing? - correct answer ✔1. coordination breakdowns
2. loss of control (no direct authority)
3. conflict (not same org. culture)
4. political hot potato (underemployment in U.S.)
What is an RFP? - correct answer ✔Request for Proposal; it describes, in great detail, what the
contractor will be doing, how, when, how much, evaluation
What are 5 best practices for outsourcing? - correct answer ✔1. frequent review and status updates
2. well defined requirements & procedures
3. extensive training and team building
4. well established conflict management
5. co-location when needed
, What new approach is recommended for outsourcing? (compared to traditional approach) - correct
answer ✔Partnering Approach
What are 4 strategies for communicating with outsourcers? - correct answer ✔1. recognize cultural
differences
2. choose the right words
3. confirm your requirements
4. set deadlines
What is escalation? - correct answer ✔parties try to work out conflict on their level, if not within a
certain time frame, then it gets moved up to the next level of management
What are some advantages of long-term outsourcing relationships? - correct answer ✔reduced
administrative costs, more efficient utilization of resources, improved communication, improved
innovation, improved performance
What is principled negotiation? - correct answer ✔process of negotiation that aims for win-win
outcome
What is BATNA? - correct answer ✔best alternative to a negotiated agreement; strong/weak indicates
your ability to negotiate with other party
What are some reasons for reducing project duration? - correct answer ✔time to market, getting back
on schedule after unforseen delays, incentive contracts, and imposed deadlines are all reasons for
reducing project duration.
What is the most common way for managers to shorten project time when resources are not
constrained? - correct answer ✔assign additional staff and equipment to activities
complete solution 2026
What is outsourcing? - correct answer ✔contracting for the use of external sources (skills) to assist in
implementing a project
What are 4 advantages of outsourcing? - correct answer ✔1. cost reduction
2. faster project completion
3. high level of expertise (focus on developing core competencies)
4. flexibility (no longer constrained by own resources)
What are 4 disadvantages of outsourcing? - correct answer ✔1. coordination breakdowns
2. loss of control (no direct authority)
3. conflict (not same org. culture)
4. political hot potato (underemployment in U.S.)
What is an RFP? - correct answer ✔Request for Proposal; it describes, in great detail, what the
contractor will be doing, how, when, how much, evaluation
What are 5 best practices for outsourcing? - correct answer ✔1. frequent review and status updates
2. well defined requirements & procedures
3. extensive training and team building
4. well established conflict management
5. co-location when needed
, What new approach is recommended for outsourcing? (compared to traditional approach) - correct
answer ✔Partnering Approach
What are 4 strategies for communicating with outsourcers? - correct answer ✔1. recognize cultural
differences
2. choose the right words
3. confirm your requirements
4. set deadlines
What is escalation? - correct answer ✔parties try to work out conflict on their level, if not within a
certain time frame, then it gets moved up to the next level of management
What are some advantages of long-term outsourcing relationships? - correct answer ✔reduced
administrative costs, more efficient utilization of resources, improved communication, improved
innovation, improved performance
What is principled negotiation? - correct answer ✔process of negotiation that aims for win-win
outcome
What is BATNA? - correct answer ✔best alternative to a negotiated agreement; strong/weak indicates
your ability to negotiate with other party
What are some reasons for reducing project duration? - correct answer ✔time to market, getting back
on schedule after unforseen delays, incentive contracts, and imposed deadlines are all reasons for
reducing project duration.
What is the most common way for managers to shorten project time when resources are not
constrained? - correct answer ✔assign additional staff and equipment to activities
