Which of the Following Statements Is Most Likely to Be

question 45

Multiple Choice

Which of the following statements is most likely to be true of outsourcing?

• A) Dispersing value-creation activities through outsourcing tends to increase the costs requires to develop a product offering.
• B) In today's world, outsourcing efforts are primarily confined to manufacturing activities, and do not include service activities.
• C) Outsourcing production to foreign countries increases the chance for companies to gain significant orders for their products from those countries.
• D) Outsourcing always increases the time required to develop a product, and allows no manufacturing flexibility.
• E) A multinational company cannot customize its products for local markets of different countries if it outsources its production activities.

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Definitions:

Buying Process

The series of steps a consumer goes through, from recognizing a need or desire to the final purchase decision, including information search, evaluation of options, and post-purchase evaluation.

Modified Rebuy

A buying situation where an organization makes changes to its previous purchase orders, involving modifications in product specifications, prices, or suppliers.

New Buy

A purchasing situation in which a buyer purchases a product or service for the first time, presenting a significant decision-making process.

Buying Center

A group of individuals within an organization who are responsible for making decisions about significant purchases, evaluating options based on the company's needs.