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
E) high unit cost

Question

Quizplus · Accepted Answer

The change in KPL Inc.'s business strategy leading to higher charges for its services represents a "loss of control" risk for Numero Uno Computers, as they rely on KPL for their recruiting process and may not have direct control over the cost implications of such strategic changes.

KPL Inc Is an Outsource Vendor