What Is the Number One Factor for Successful Outsourcing

question 63

Multiple Choice

What is the number one factor for successful outsourcing?

• A) Reducing and controlling operating costs
• B) Understanding the company's goals and objectives
• C) Commitment to quality
• D) Sharing the risks

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Definitions:

Conglomerate Merger

Occurs when unrelated enterprises combine, such as Mobil Oil and Montgomery Ward.

Horizontal

Term often used in analysis to indicate a flat or level condition, such as a horizontal merger, which occurs between companies in the same industry.

Vertical Business Relationship

A business model where a company is involved in multiple stages of the production process, from raw material to final product, often through acquisitions or partnerships.

Financial Synergy

The potential increase in value and performance of two companies when they are merged, due to various factors like cost savings or revenue enhancement.