Which of the following statements is true?
A) Outsourcing decreases the extent of a company's vertical integration.
B) Reputation of the supplier is a critical issue in an outsourcing decision.
C) An outsourcing decision involves a purchase offer from a customer at a lower than normal selling price.
D) Outsourcing decreases the extent of a company's vertical integration and the reputation of the supplier is a critical issue in an outsourcing decision.

Question

Quizplus · Accepted Answer

Outsourcing reduces vertical integration as it involves contracting out parts of the production process. The supplier's reputation is crucial to ensure quality and reliability.

Which of the Following Statements Is True