Harrison is a manager at Delta Inc., a computer manufacturing company. He believes that Delta should produce all computer components in-house rather than buying them elsewhere. Which of the following is a true statement that supports his belief?
A) Making components in-house can help a firm maintain control of sensitive knowledge.
B) Producing components in-house can help a firm develop production expertise with minimum time and effort.
C) Producing components in-house can make it easy for a firm to achieve economies of scale.
D) In-house producers have the same incentives as external suppliers to produce high-quality products.

Question

Quizplus · Accepted Answer

A) Making components in-house can help a firm maintain control of sensitive knowledge, which is a true statement supporting the belief in producing components in-house to protect proprietary information and maintain competitive advantage.

Harrison Is a Manager at Delta Inc