OUTSOURCING & CONTRACT MANAGEMENT

E4-E5 Management
OUTSOURCING & CONTRACT MANAGEMENT
Q. 1 , What is outsourcing?

a) A process in which a company shifts its essential operations to a third party vendor in order to gain various benefits.

b) A process in which a company retains all its operations in-house.

c) A process in which a company transfers control of its operations to its employees.

d) None of the above.

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Q. 2 , What are the three levels of outsourcing?

a) Division level, project level, and program level.

b) Management level, HR level, and finance level.

c) Operational level, strategic level, and marketing level.

d) None of the above.

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Q. 3 , What is a key factor that influences the decision to outsource at a particular level?

a) Criticality of the work

b) Trust in the vendor

c) Cost savings

d) All of the above

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Q. 4 , What is the difference between on-shoring and off-shoring?

a) On-shoring is outsourcing to a vendor that is located domestically while off-shoring is outsourcing to a vendor located in a far-off country.

b) On-shoring is outsourcing to a vendor that is located in a far-off country while off-shoring is outsourcing to a vendor located domestically.

c) On-shoring is outsourcing to a vendor that is located in a nearby country while off-shoring is outsourcing to a vendor located domestically.

d) None of the above.

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Q. 5 , What are the benefits of outsourcing for a company?

a) Focus on core competencies

b) Cost savings

c) Quality improvement

d) All of the above

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Q. 6 , What is home-sourcing in outsourcing?

a) Outsourcing to workers who work from home.

b) Outsourcing to a vendor located domestically.

c) Outsourcing to a vendor located in a nearby country.

d) None of the above.

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Q. 7 , What is multi-sourcing in outsourcing?

a) Outsourcing to multiple vendors.

b) Outsourcing to a single vendor.

c) Outsourcing to a vendor located domestically.

d) None of the above.

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Q. 8 , What is the potential cost savings from outsourcing, according to Accenture?

a) 25% to 30%

b) 30% to 40%

c) 40% to 50%

d) 50% to 60%

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Q. 9 , What is the key to success in outsourcing?

a) Selecting the right vendor

b) Proper communication with the vendor

c) Clearly defined objectives

d) All of the above

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Q. 10 , What is the impact of outsourcing on a company's core competencies?

a) It enables the company to focus on its core competencies

b) It distracts the company from its core competencies

c) It has no impact on the company's core competencies

d) None of the above

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Q. 11 , What is outsourcing?

a. Shifting a company’s operations to a third party vendor in a different country

b. Shifting a company’s operations to a third party vendor in the same country

c. Shifting a company’s operations to a third party vendor in a nearby country

d. None of the above

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Q. 12 , What are the levels of outsourcing in companies?

a. Project level

b. Program level

c. Division level

d. All of the above

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Q. 13 , What factors determine the decision of outsourcing at a particular level?

a. Critical nature of work

b. Faith of the customer in a vendor

c. Cost advantage

d. All of the above

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Q. 14 , What are the different modes of outsourcing?

a. On-shoring

b. Offshoring

c. Near-shoring

d. All of the above

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Q. 15 , What is multi-sourcing in outsourcing?

a. Combination of all modes of outsourcing

b. Only offshoring

c. Only on-shoring

d. Only near-shoring

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Q. 16 , What are the benefits of outsourcing?

a. Focus on core competencies

b. Cost savings

c. Quality

d. All of the above

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Q. 17 , What is the estimated cost savings in outsourcing according to Accenture?

a. 10-15 percent

b. 20-25 percent

c. 25-30 percent

d. 30-35 percent

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Q. 18 , What should a customer consider while selecting a vendor for outsourcing?

a. Location of vendor

b. Expertise of vendor

c. Quality of services offered by vendor

d. All of the above

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Q. 19 , What is home-sourcing in outsourcing?

a. Outsourcing to workers in a different country

b. Outsourcing to workers in the same country

c. Outsourcing to workers who work from home

d. None of the above

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Q. 20 , What are the advantages of outsourcing for companies?

a. Time-to-market reduction

b. Flexibility

c. Improved quality of output

d. All of the above

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Q. 21 , What is offshoring in outsourcing?

a. Outsourcing to a vendor located in a far-off country

b. Outsourcing to a vendor located in a nearby country

c. Outsourcing to a vendor located in the same country

d. None of the above

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Q. 22 , What is near-shoring in outsourcing?

a. Outsourcing to a vendor located in a far-off country

b. Outsourcing to a vendor located in a nearby country

c. Outsourcing to a vendor located in the same country

d. None of the above

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Q. 23 , What is on-shoring in outsourcing?

a. Outsourcing to a vendor located in a far-off country

b. Outsourcing to a vendor located in a nearby country

c. Outsourcing to a vendor located in the same country

d. None of the above

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Q. 24 , What are the two categories of services that are generally outsourced by companies?

A. Technology services and business processes

B. Software development and marketing

C. E-commerce and customer service

D. Network infrastructure and data analytics

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Q. 25 , What is the main goal for a company when outsourcing work?

A. To reduce costs

B. To increase internal resources

C. To focus on core competencies

D. All of the above

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Q. 26 , What are some common technology services that are outsourced by companies?

A. Software development and maintenance

B. E-commerce and data analytics

C. Network infrastructure and marketing

D. Web hosting and website design

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Q. 27 , What are some business processes that are commonly outsourced by companies?

A. Human resources and payroll

B. Product development and data analysis

C. Sales and marketing and administrative support

D. Research and legal services

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Q. 28 , What are some of the criteria for selecting an outsourcing vendor?

A. Cost, quality commitment, and additional resources and capabilities

B. Location, vendor processes, and cultural similarity

C. Reporting methodologies, financial stability, and contract terms

D. All of the above

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Q. 29 , What is the main reason for outsourcing work to an external agency?

A. To reduce costs and increase efficiency

B. To increase internal resources and focus on core competencies

C. To gain access to advanced technology and services

D. All of the above

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Q. 30 , What is the importance of confidentiality when selecting an outsourcing vendor?

A. The vendor should have well-defined security policies in place to protect the customer's data.

B. The vendor should be located in a secure location.

C. The vendor should have a solid financial stability.

D. The vendor should have a good reputation with references.

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Q. 31 , What is the term used to describe outsourcing of business processes?

A. BPO

B. KPO

C. LPO

D. All of the above

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Q. 32 , What are the common terminologies used for outsourcing services?

A. Business Process Outsourcing, Knowledge Process Outsourcing, Legal Process Outsourcing

B. Research Process Outsourcing, Recruitment Process Outsourcing, Education Process Outsourcing

C. Web hosting, website designing, development and maintenance

D. Network infrastructure and telecommunication services

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Q. 33 , What is the main challenge when selecting an outsourcing vendor?

A. To achieve superior quality service at lower cost and minimum involvement

B. To avoid exposing the customer to risks of poor work delivery

C. To find a vendor with experience working with other organizations

D. Both A and B

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Q. 34 , What is outsourcing?

a. The process of getting work done by an internal team.

b. The process of getting work done by an external firm.

c. The process of getting work done by a team within the company.

d. None of the above

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Q. 35 , What should a customer pay attention to for outsourcing success?

a. Selecting the right vendor only

b. Setting right expectations and benchmarking methodology

c. Trusting the vendor only

d. None of the above

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Q. 36 , What are the two components of the telecom network that are outsourced?

a. Sales and marketing

b. Customer service and support

c. Towers (active and passive components)

d. None of the above

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Q. 37 , What are the challenges in the tower management companies operating in the Indian telecom sector?

a. High competition

b. Low profits

c. Multi-sourcing arrangement

d. None of the above

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Q. 38 , What is the focus of telecom services in recent years?

a. Generating more revenue from voice services

b. Improving quality of life through new applications and services

c. Reducing revenue from value-added services

d. None of the above

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Q. 39 , What is the role of entrepreneurs in the Indian telecom sector?

a. Developing new apps for consumers

b. Providing customer service and support

c. Generating revenue from voice services

d. None of the above

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Q. 40 , How are Telco's being challenged in the content generation space?

a. By large companies with more resources

b. By small to medium size companies who are more nimble and agile

c. By government regulations

d. None of the above

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Q. 41 , What is the policy of BSNL on outsourcing?

a. Outsourcing is not allowed

b. Outsourcing is allowed for maintenance and provisioning of landline and broadband for external plant of copper network

c. Outsourcing is allowed for all services

d. None of the above

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Q. 42 , What is the definition of a proposal according to the Indian Contract Act-1872?

a. A request for a service

b. A sign of willingness to do something to obtain assent

c. A promise to do something

d. None of the above

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Q. 43 , What is a contract according to the Indian Contract Act-1872?

a. An agreement not enforceable by law

b. An agreement enforceable by law

c. A proposal that has been accepted

d. None of the above

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Q. 44 , What happens when the communication of a proposal is complete?

A. It becomes known to the person it is made to.

B. It becomes binding on the person who made the proposal.

C. It can only be revoked by the person who made the proposal.

D. It can be revoked at any time by the person who made the proposal.

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Q. 45 , What are the ingredients of a contract according to Sec-10?

A. Made by free consent, by parties competent to contract, for a lawful consideration and with a lawful object.

B. Made by mutual agreement, by minors, for an unlawful consideration and with an unlawful object.

C. Made by coercion, by persons of unsound mind, for a lawful consideration and with a lawful object.

D. Made by undue influence, by disqualified persons, for an unlawful consideration and with an unlawful object.

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Q. 46 , Who is competent to contract according to Sec-11?

A. Every person who is a minor.

B. Every person who is of sound mind.

C. Every person who is not disqualified from contracting by any law.

D. Every person who is a major.

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Q. 47 , What are the conditions for free consent according to Sec-14?

A. No coercion, no undue influence, no fraud, no misrepresentation of facts and no mistake.

B. Coercion, undue influence, fraud, misrepresentation of facts and mistake are allowed.

C. No coercion, no undue influence, no fraud, no misrepresentation of facts, but mistake is allowed.

D. No coercion, undue influence and misrepresentation of facts are allowed, but fraud and mistake are not allowed.

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Q. 48 , What happens when one party prevents the other from performing their promise in a contract with reciprocal promises according to Sec-53?

A. The contract becomes void.

B. The contract becomes voidable at the option of the party prevented and the party is entitled to compensation from the other party.

C. Both A and B

D. None of these

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Q. 49 , When can a promisor not claim the performance of the reciprocal promise according to Sec-54?

A. When the other party performs their promise.

B. When the promisor fails to perform their promise.

C. Both A and B

D. None of these

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Q. 50 , What happens when a party fails to perform a certain thing at or before a specified time according to Sec-55?

A. The contract becomes void.

B. The contract becomes voidable at the option of the promisee if time was essential.

C. The contract does not become voidable if time was not essential, but the promisee is entitled to compensation.

D. The contract becomes valid if the promisee accepts performance at a time other than agreed upon.

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Q. 51 , What is the obligation of a person who enjoys the benefit of a non-gratuitous act according to Sec 70?

A. To make compensation in respect of the thing done or delivered

B. To restore the thing done or delivered

C. To make compensation or restore the thing done or delivered

D. None of the above

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Q. 52 , What is the compensation for a loss or damage caused by the breach of contract according to Sec 73?

A. Any loss or damage caused by the breach of the contract

B. Remote and indirect loss or damage sustained

C. Loss or damage caused by the breach of the contract or known to result from the breach

D. None of the above

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Q. 53 , What is the compensation for breach of contract where a penalty is stipulated according to Sec 74?

A. The amount named in the contract or the penalty stipulated for

B. Actual damage or loss caused by the breach of contract

C. Reasonable compensation not exceeding the amount named or penalty stipulated for

D. None of the above

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Q. 54 , What is the entitlement of a person who rightfully rescinds a contract according to Sec 75?

A. To receive consideration for damage sustained through the non-fulfillment of the contract

B. To receive the amount named in the contract

C. To receive reasonable compensation not exceeding the amount named

D. None of the above

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Q. 55 , Who has more control over the process being contracted in outsourcing?

A. The vendor

B. The customer

C. Both the vendor and the customer

D. None of the above

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Q. 56 , What is the purpose of categorizing contracts in contract management?

A. For effective internal and centralized control

B. For effective decentralization and control

C. For effective internal control only

D. None of the above

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Q. 57 , What does a robust contract management system include according to the conclusion?

A. Contract strategizing and vetting

B. Versioning and storage

C. Effective retrieval system and prompting tools

D. All of the above

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Q. 58 , What does a robust contract management system help in managing according to the conclusion?

A. Contractual relationships

B. Business relationships

C. Relationships with vendors, customers and employees

D. Relationships with stakeholders

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Q. 59 , What can theories of contract management help in according to the conclusion?

A. Gauging the effectiveness and worth of business relationships

B. Keeping the business mindful of the law

C. Creating value for the organization's stakeholders

D. All of the above

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Q. 60 , What is the main purpose of the applied theories of contract management according to the conclusion?

A. To help manage contractual relationships

B. To help manage business relationships

C. To help create value for the organization's stakeholders

D. All of the above

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