The process where a firm contracts out a business process or activity to an external supplier is known as _________.
A)outsourcing
B)vertical integration
C)horizontal diversification
D)market penetration

Question

Quizplus · Accepted Answer

Outsourcing involves a firm contracting out a business process or activity to an external supplier. This can be done in order to reduce costs, improve efficiency, or focus on core competencies. Vertical integration involves a firm expanding its operations by acquiring or merging with other firms in its supply chain, while horizontal diversification involves a firm expanding into new product or service markets. Market penetration involves a firm increasing its market share in an existing market.

The Process Where a Firm Contracts Out a Business Process