MECHANIC 102/Chapter 12 Outsourcing: Managing Interorganizational Relations Answer Key

Multiple Choice Questions 1. ontracting project work has long been the norm in the _______ industry. A. Telecommunications B. Financial C. Insurance D. Construction E. Retail Contracting project work has long been the norm in the construction industry, where firms hire general contractors who, in turn, hire and manage cadres of subcontractors to create new buildings and structures. AACSB: Reflective Thinking Bloom's: Knowledge Learning Objective: Outsourcing Project Work Level: Easy 2. The process for the transferring of business functions or processes to other, often foreign, companies has traditionally been known as: A. Subcontracting B. Downsizing C. Partnering D. Joint venture E. Outsourcing The term outsourcing has traditionally been applied to the transferring of business functions or processes (e.g., customer support, IT, accounting) to other, often foreign companies. AACSB: Analytic Bloom's: Knowledge Learning Objective: Outsourcing Project Work Level: Easy 12-1 Chapter 12 - Outsourcing: Managing Interorganizational Relations 3. When you call your Internet provider to solve a technical problem and you end up talking to a technician in India or Romania, you have just experienced: A. Telecommunications B. Partnering C. Outsourcing D. Service shift E. Bilingual customer service When you call your Internet provider to solve a technical problem you are likely to talk to a technician in Bangalore, India, or Bucharest, Romania, a company has Outsourced the task. AACSB: Reflective Thinking Bloom's: Comprehension Learning Objective: Outsourcing Project Work Level: Easy 4. Which of the following is not a potential part of the outsourcing concept? A. Computers B. Faxes C. Computer-aided design systems D. Video teleconferencing E. All the above are correct Many outsourced projects operate in a virtual environment in which people are linked by computers, faxes, computer-aided design systems, and video teleconferencing. AACSB: Reflective Thinking Bloom's: Knowledge Learning Objective: Outsourcing Project Work