The Key to Outsourcing Is to Purchase from the Outside

question 1

Multiple Choice

The key to outsourcing is to purchase from the outside only those activities that

• A) are not central to the company's distinctive competence.
• B) are very expensive.
• C) provide the company competitive advantage.
• D) are provided by an important supplier.
• E) are not very expensive.

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Definitions:

Reclamation Costs

Expenses associated with the process of restoring land after it has been used or damaged, such as in mining activities.

Natural Resource

Assets that occur in the environment naturally, such as minerals, forests, and water bodies, which can be used for economic benefit.

Depletion

The allocation of the cost of natural resources over their useful life.

Statutory Depletion

A tax deduction allowing an owner to account for the reduction of a product's reserves.