1. Which of the following is NOT TRUE regarding core competencies?

A)They may include specialized knowledge.

B)They may represent a small portion of an organization's business activities.

C) They may include proprietary technology or information.

D) They may be good candidates for outsourcing.

E) They may include unique production methods.

2. Which of the following statements is most accurate?

A) Nearly all outsourcing relationships do not last beyond 2 years.

B) Nearly all U.S. firms that outsourced processes to India have backsourced them.

C) Approximately half of all outsourcing agreements fail.

D) Outsourcing is a relatively risk-free activity.

E) More than 90% of outsourcing agreements succeed.

3. Which of the following is NOT an advantage of outsourcing?

A) Cost savings

B) Gaining outside expertise

C) Improving operations and service

D) Outsourcing core competencies

E) Gaining outside technology

4. McDonald's Russian "food town" is to _____ risk as Hard Rock Café's franchising in diverse political and cultural environments to overcome barriers is to _____ risk.

A) process, environmental

B) control, environmental

C) control, process

D) process, control

E) environmental, control

5. Keeping a product generic as long as possible before customizing is known as

A) postponement.

B) keiretsu.

C) vendor-managed inventory.

D) forward integration.

E) backward integration.