Outsourcing:
A)eliminates the need for a value chain.
B)reduces the firm's dependence on its value chain.
C)reorders the steps in a firm's value chain.
D)moves some value chain activities outside the firm.
E)strengthens the firm's capabilities in each value chain function.

Question

Outsourcing:
A)eliminates the need for a value chain.
B)reduces the firm's dependence on its value chain.
C)reorders the steps in a firm's value chain.
D)moves some value chain activities outside the firm. 
E)strengthens the firm's capabilities in each value chain function.

Quizplus · Accepted Answer

Outsourcing involves moving some of a firm's value chain activities outside of the firm, often to third-party vendors or contractors. This can help reduce costs and improve efficiency, but it does not eliminate the need for a value chain, nor does it necessarily strengthen the firm's capabilities in each value chain function. Therefore, option D is the correct answer.