A Firm That Buys from Another Company a Good or Service

question 92

Multiple Choice

A firm that buys from another company a good or service that is part of the firm's value-added activities is practicing ________.

• A) outsourcing
• B) vertical integration
• C) horizontal integration
• D) lean production

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Definitions:

Measurement Error

The difference between the observed value and the true value of a variable, due to imprecision in measurement tools or techniques.

Reactivity

The phenomenon in which the presence of an observer or the awareness of being measured alters the behavior or responses of subjects.

Variability

The degree to which scores in a dataset differ from each other and from their average.

Reliability Coefficient

The reliability coefficient is a measure that assesses the consistency or stability of a test score or instrument over time.