When Deciding Whether to Outsource or Insource a Product or Service

question 107

Multiple Choice

When deciding whether to outsource or insource a product or service, managers consider:

• A) The reliability of the product or service supplier
• B) All of the fixed costs
• C) Only the variable costs
• D) No qualitative factors

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Definitions:

Legal Form

specifies the structure of an organization or entity in legal terms, including options such as sole proprietorship, partnership, corporation, and Limited Liability Company (LLC), each having distinct legal implications.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Sole Proprietorship

A business structure where a single individual owns, operates, and is responsible for all aspects of the business.

Partnership

An authorized business entity run by two or more partners who equally divide management duties and earnings.