KPL Inc. is an outsource vendor. It handles the recruiting process for Numero Uno Computers. KPL recently changed its business strategy to a more profit-oriented one. This modification would require the company to charge more for its services. This change will be a ________ risk for Numero Uno Computers.
A)de facto sole source
B)benefits outweighed by long-term costs
C)no easy exit
D)loss of control

Question

Quizplus · Accepted Answer

KPL Inc. is the only vendor that handles the recruiting process for Numero Uno Computers. If KPL Inc. raises its prices, Numero Uno Computers will have no choice but to pay the higher prices. This is a loss of control risk for Numero Uno Computers because it gives KPL Inc. the power to dictate the terms of the relationship.

KPL Inc Is an Outsource Vendor