Which of the Following Is the Number-One Reason Driving Outsourcing

question 18

Multiple Choice

Which of the following is the number-one reason driving outsourcing for many firms?

• A) cost savings
• B) gaining outside expertise
• C) improving operations and service
• D) focusing on core competencies
• E) gaining outside technology

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Definitions:

Herfindahl Indexes

A measure used to calculate the level of concentration in a market, indicating the competitive environment and potential for monopolistic power.

Four-Firm Concentration Ratio

A measure that indicates the total market share held by the largest four firms in an industry, used to assess the level of competition.

Product Differentiation

Product differentiation is the process of distinguishing a product or service from similar offerings in the market to make it more attractive to a particular target market.