The procurement of selected value-adding activities, including production of intermediate goods or finished products, from independent suppliers is known as ________.
A) outsourcing
B) franchising
C) offshoring
D) licensing

Question

Quizplus · Accepted Answer

Outsourcing refers to the practice of obtaining goods or services from an outside or foreign supplier, especially in place of an internal source. It involves the procurement of selected value-adding activities, such as the production of intermediate goods or finished products, from independent suppliers.

The Procurement of Selected Value-Adding Activities, Including Production of Intermediate