Outsourcing is _____.
A) the same as offshoring
B) the opposite of vertical integration
C) the opposite of backward integration
D) the same as diversifying

Question

Quizplus · Accepted Answer

Outsourcing refers to the practice of contracting with an external company or individual to provide goods or services that could otherwise be done in-house. It involves transferring some of a company's functions and responsibilities to external vendors, contractors, or freelancers. It is not synonymous with offshoring, which specifically refers to moving business processes or jobs to another country. Outsourcing is also different from diversifying, which involves expanding a company's business into different industries or product lines. Backward integration refers to the process of a company expanding its control over its suppliers. Vertical integration is a term that encompasses both backward and forward integration, which involves expanding a company's control over its suppliers and distributors, respectively. Therefore, outsourcing is the opposite of vertical integration.

Outsourcing Is _____