Which of the Following Statements Is True of Contract Manufacturing

question 25

Multiple Choice

Which of the following statements is true of contract manufacturing?

• A) It requires companies to increase its labor force to meet the scale of market demand.
• B) It requires firms to meet the scale of market demand by committing to long-term capital investments.
• C) It enables a firm to tap the greater economies of scale.
• D) It decreases organizational responsiveness to the environment.

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Definitions:

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into existence, relatedness, and growth needs.

Frustration-Regression Principle

A concept suggesting that when faced with frustration, individuals may regress to a previous level of maturity, affecting their problem-solving and coping strategies.

Social Needs

Basic human requirements comprising of love, belonging, and interpersonal relationships.

Pleasant Supervisor

A manager or overseer who is approachable and creates a positive working environment for employees through friendly and considerate interactions.