Outsourcing Is the Reverse of Vertical Integration

question 112

True/False

Outsourcing is the reverse of vertical integration.

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Definitions:

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, engaged in commercial, industrial, or professional activities.

Operating

The act of conducting business or maintaining functions within an organization or system.

Corporate Hierarchy

The arrangement of individuals within a corporation according to power, status, and job function, often visualized as a pyramid with the highest-ranking officer at the top.

CEOs

Chief Executive Officers, the highest-ranking individuals in a company, responsible for making major corporate decisions, managing operations, and communicating with the board of directors.