Catering,trucking,copying,and mainframe computing are among frequently outsourced services because these activities:
A)require assets that are highly firm specific.
B)are not specialized.
C)have a high level of uncertainty.
D)have a relatively low potential for holdup actions.

Question

Quizplus · Accepted Answer

These services have a relatively low potential for holdup actions, meaning that the outsourced vendor is less likely to take advantage of the firm due to the availability of alternative options in the market. The other options do not necessarily apply to these services, as they can be specialized, low in uncertainty, and may require firm-specific assets.

Catering,trucking,copying,and Mainframe Computing Are Among Frequently Outsourced Services Because These