Post Utme Aaua 2017 Commerce Question 40

Practice objective / multiple choice question 40 from the 2017 Post Utme Aaua Commerce examination.

Post Utme Aaua 2017 Commerce Objective / Multiple Choice
Question 40 POST_UTME_AAUA • 2017 • COMMERCE • objective

A firm is considering outsourcing its production to a foreign country. The firm has determined that outsourcing will reduce its production costs by 15%. However, the firm is concerned about the risks associated with outsourcing, including the risk of intellectual property theft. What should the firm do to mitigate these risks?

Answer Options

Correct Answer A. Use a contract that includes a clause that prohibits the foreign supplier from stealing the firm's intellectual property
B. Use a contract that includes a clause that requires the foreign supplier to pay a penalty if they steal the firm's intellectual property
C. Do not use any risk mitigation measures and rely on the foreign supplier to protect the firm's intellectual property
D. Use a combination of contract clauses to mitigate the risks
Correct Answer
A
Correct Option:
Use a contract that includes a clause that prohibits the foreign supplier from stealing the firm's intellectual property

About This Question

This is Post Utme Aaua 2017 Commerce Question 40. It is one of the objective questions from the 2017 Post Utme Aaua Commerce examination.

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