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:

Growth Determinant

A factor that is critical to the expansion of a company or economy, such as technology, capital, and human resources.

Retained Earnings

Profits that a company chooses not to distribute as dividends but instead reinvests into the business or uses to pay off debt, reflecting the accumulated surplus from business operations.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, usually expressed as a percentage.