What Theory Implies That You Should Allow Another Firm to Perform

question 118

Multiple Choice

What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?

• A) theory of competitive advantage
• B) theory of core competencies
• C) theory of comparative advantage
• D) theory of outsourcing
• E) theory of offshoring

---

Definitions:

Internal Process

Activities and operations carried out within an organization to ensure the effective creation of goods or delivery of services.

Innovation And Learning

The process of creating new ideas, products, or methods and the acquisition of knowledge to improve efficiency or effectiveness.

Residual Income

A measure of the income that exceeds the minimum required return on a company's investments or operations.

Divisional Income

The earnings generated by a specific division or segment of a larger company, used for evaluating the division's financial performance.