What Is an Arrangement by Which One Organization Provides a Service

question 92

Multiple Choice

What is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house?

• A) In-sourcing
• B) Outsourcing
• C) Business process outsourcing
• D) Offshore outsourcing

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Definitions:

Pull Processes

Manufacturing or production processes initiated by actual customer demand rather than forecasting, aiming to reduce inventory and increase efficiency.

Speculative Processes

Refers to procedures or methods based on conjecture rather than knowledge, often used in finance or trading to make decisions based on potential future events.

Reactive Processes

Processes that are initiated in response to specific situations or changes, rather than being pre-planned or proactive.

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent, involved in producing and delivering a product or service from suppliers to the end consumer.