According to the text,the make-or-buy decision begins with the base case that ________.
A) outsourcing is more attractive than vertical integration
B) vertical integration offers higher ROI than outsourcing
C) idiosyncratic assets decrease with environmental uncertainty
D) backward integration is more profitable than forward integration
E) outsourcing is best when company-specific capabilities are tangible

Question

Quizplus · Accepted Answer

The make-or-buy decision starts with the assumption that outsourcing (having another company perform services or produce goods that could be done in-house) is more attractive than vertical integration (a company's expansion into different stages of production). This is because outsourcing can often be more cost-effective and allows a company to focus on its core competencies.

According to the Text,the Make-Or-Buy Decision Begins with the Base