Pilot Motors Corporation is an automobile manufacturer. The company produces its own motors, tires, and other automobile parts. Pilot has the opportunity to purchase tires from another manufacturer instead of producing the tires in its own facility. This type of decision is typically known as a(n):

Question

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The decision to buy a component or service from an external supplier instead of producing it internally is referred to as an outsourcing decision. In this scenario, Pilot Motors Corporation is considering purchasing tires from another manufacturer instead of making them in-house, which is a classic example of an outsourcing decision.

Pilot Motors Corporation Is an Automobile Manufacturer