A firm will prefer to make the component internally rather than contract it out to a supplier,because of all of the following reasons except:

Question

Quizplus · Accepted Answer

The other options (A, B, and D) all provide reasons for why a firm would want to maintain control over the production of a component. Option C is the only one that does not provide a valid reason, as trusting a supplier to play fair may not be a sufficient reason to keep production in-house.

A Firm Will Prefer to Make the Component Internally Rather