A characteristic of outsourcing is
A) completely unrelated to vertical integration
B) likely to be profitable exactly when vertical integration is profitable
C) can allow a firm to focus on its core competencies
D) it prevents the exploitation of differing degrees of economies of scale at different points in the supply chain

Question

Quizplus · Accepted Answer

Outsourcing can allow a firm to delegate non-core functions or tasks to a third party, freeing up resources and allowing the firm to focus on its core competencies. This can ultimately lead to increased efficiency and profitability. Choices A, B, and D are not necessarily true, as outsourcing can be related to vertical integration, may not always be profitable, and can potentially still allow for economies of scale to be realized at various points in the supply chain.

A Characteristic of Outsourcing Is