Which of the following is FALSE with regard to the make or buy option?
A)The advantage of outsourcing activities that do not directly contribute to the company's bottom line reduces production costs.
B)The advantage of outsourcing activities that do not directly contribute to the company's bottom line reduces capital investment.
C)The advantage of outsourcing is the opportunity for the primary firm to avoid responsibility for product failure due to outsourced production.
D)The disadvantage of outsourcing is possible loss of control over the outsourced production of the work that has been outsourced.

Question

Quizplus · Accepted Answer

The advantage of outsourcing is not to avoid responsibility for product failure but rather to focus on core business activities and reduce costs. Avoiding responsibility for product failure would actually be a disadvantage and a risk for the primary firm.

Which of the Following Is FALSE with Regard to the Make