Question: Flat World Systems is a startup company that develops computer games. As the company has grown it has hired new programmers and processing payroll has

Flat World Systems is a startup company that develops computer games. As the company has grown it has hired new programmers and processing payroll has become a chore for the owners. Flat World Systems decides to utilize an outside service provider. The owners believe that using an outside service provider will eliminate the headache and probably cost less. They hope it will totally eliminate Flat World’s risks over its payroll functions. Respond to the owners’ expectations regarding risks over payroll after outsourcing the function. How does the extent of the activities outsourced affect the risks that Flat World retains?

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