Which of the Following Best Explains the Concept of 'Outsourcing

question 16

Multiple Choice

Which of the following best explains the concept of 'outsourcing'? 

• A) Transferring activities that were previously conducted in-house, to a third party. 
• B) Transferring activities to a third party. 
• C) Transferring activities that were previously externally, to another third party. 
• D) Transferring activities from one section of the organization to another.

---

Definitions:

Production Possibilities

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.

Opportunity Cost

Forgoing possible gains from alternative paths when one path is chosen.

Farmer

An individual engaged in agriculture, raising living organisms for food or raw materials.

Comparative Advantage

The ability of a party to produce a particular good or service at a lower marginal and opportunity cost than another.