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When Is It Inappropriate to Outsource an Activity

Question 33

Multiple Choice

When is it inappropriate to outsource an activity?


A) When the company might lose control over its costs or differentiation values.
B) When the company can do something itself at only a slightly greater cost.
C) When the company must write a contract that is too complex to manage the relationship with a supplier.
D) When the company reaches the recommended strategic limit of 125 different activities that have already been outsourced.

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