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The Management of an Automobile Manufacturing Company Signed a Contract

question 22

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 The management of an automobile manufacturing company signed a contract with a consultancy that provides recruitment services. Though the organization was performing this function on its own previously, the management felt that the consultancy would offer a better service. Which of the following alternatives to vertical integration has the management opted?


Definitions:

Vertical Merger

A merger between two companies that operate at different levels in the production process of the same industry.

Small Business

An independently owned and operated company that is limited in size and revenue, depending on the industry.

Direct SBA Loans

Loans provided directly by the Small Business Administration to small businesses that meet certain qualifications.

Natural Disaster

A sudden and devastating event in nature, such as a hurricane, flood, or earthquake, that causes significant damage or loss.

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