Which of the Following Is True of Contract Manufacturing

question 1

Multiple Choice

Which of the following is true of contract manufacturing?

• A) It enhances a firm's in-house capabilities.
• B) It allows firms to meet the scale of market demand by committing to long-term capital investments.
• C) It enables a firm to tap the greater economies of scale.
• D) It decreases organizational responsiveness to the environment.

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Definitions:

Levels-Of-Processing Principle

A theory suggesting the depth of mental processing affects memory recall, with deeper levels of analysis producing more durable memory traces.

Method of Loci

A mnemonic technique that involves imagining placing items to be remembered in specific locations within a familiar place.

Von Restorff Effect

The tendency to remember unusual or distinctive items more easily than common items.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing tasks such as reasoning and comprehension.