Which of the Following Statements Is a Characteristic of Outsourcing

question 9

Multiple Choice

Which of the following statements is a characteristic of outsourcing?

• A) Management should have expertise on a subject before it can decide to outsource.
• B) An outsource vendor transfers the responsibility of risk management to the development group.
• C) To achieve quality, it is easier to hire another vendor than it is to fire and rehire internal staff.
• D) Outsourcing leads to increased financial risk.

---

Definitions:

Product Positioning

The place a product occupies in consumers’ minds based on important attributes relative to competitive products.

Competitive Products

Goods or services that are in direct competition with each other, vying for the same customer base within a market.

Marketing Synergies

The increased effectiveness resulting from the combined operation or cooperation of diverse marketing strategies or activities.

Product Synergies

Refers to the combined effect that is greater than the sum of individual effects, achieved when multiple products are integrated or marketed together.