Which of the following scenarios illustrates the concept of outsourcing?
A)TechOn Inc., a company that buys raw materials from a supplier company
B)BNX Corp., a company that procures raw materials and supplies them to a different company
C)Virgo Corp., a company that contracts out a business activity to another company
D)Red Inc., a company that sells all its assets to another company

Question

Quizplus · Accepted Answer

Outsourcing refers to contracting out a business activity or function to another company. Option C, Virgo Corp., is the only scenario that illustrates outsourcing as it involves contracting out a business activity. Options A, B, and D do not involve outsourcing.

Which of the Following Scenarios Illustrates the Concept of Outsourcing