When an existing firm with the correct manufacturing capabilities makes your product for you,it is called
A)contract manufacturing.
B)sheltered workshops.
C)e-tailing.
D)freight forwarding.

Question

Quizplus · Accepted Answer

Contract manufacturing involves outsourcing the manufacturing of a product to an existing firm that has the required capabilities. This allows the company to focus on other aspects of the business, such as marketing and distribution, while leveraging the expertise of the contract manufacturer. Sheltered workshops are facilities that provide employment opportunities for individuals with disabilities, e-tailing is online retailing, and freight forwarding is a service that arranges the transportation of goods from one location to another. None of these options are relevant to the concept of contract manufacturing.

When an Existing Firm with the Correct Manufacturing Capabilities Makes