Orange Computer Co. is quickly becoming a major player in the personal computer market. The company currently has multiple companies producing products that go into an Orange computer. This practice of having an outside firm provide a function for Orange Computer Co. is called:
A) Outsourcing.
B) Opportunity costing.
C) Profit diversification.
D) Strategic positioning.
E) Competitive sourcing.

Question

Quizplus · Accepted Answer

Outsourcing is the practice of having an outside firm provide a function or service for a company. In this case, Orange Computer Co. is outsourcing the production of certain components that go into their personal computers.