Which of the Following Would Be a Good Reason to Outsource

question 30

Multiple Choice

Which of the following would be a good reason to outsource (buy) versus making?

• A)A firm lacks the technology or expertise to produce an item
• B)To utilize existing capacity within a company's own firm
• C)To have more direct control over the design and production of an end item
• D)No competent supplier presently produces the needed item

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Definitions:

Personal Saving

Personal saving is the portion of personal income that is not expended on consumption or taxes and is instead saved for future use.

Total Saving

The sum of personal savings, plus business savings (undistributed corporate profits), and government surplus in an economy.

Disposable Income

Financial reserves allocated for households for expenditures and savings following income tax reductions.

APC

Average Propensity to Consume, which is the ratio of total consumption to total income.