Which of the following transactions can be categorized as outsourcing?
A)A U.S.furniture manufacturer buying a lumber facility.
B)A U.S.firm transferring some of its operations to its new subsidiary in India.
C)Nike selling its sportswear to customers through its franchisees across the world.
D)A U.S.cosmetics firm using an advertising agency to market its products.

Question

Quizplus · Accepted Answer

Outsourcing involves contracting out certain business functions or operations to third-party providers. In this case, a U.S. cosmetics firm using an advertising agency to market its products is an example of outsourcing because the firm is hiring another company to handle its advertising efforts, which is a specific business function.

Which of the Following Transactions Can Be Categorized as Outsourcing