Which of the following is not true regarding outsourcing?
A) It involves significant transaction costs.
B) It is a way to meet market demand without a long-term commitment.
C) It is a great way for a company to develop needed manufacturing capabilities.
D) There is some risk of the contract manufacturer exposing the technology to other customers.

Question

Quizplus · Accepted Answer

Outsourcing can provide a way to meet market demand without a long-term commitment and can involve significant transaction costs. However, outsourcing may not necessarily be a great way for a company to develop needed manufacturing capabilities, as it involves reliance on another entity. Additionally, there is a risk of the contract manufacturer exposing the technology to other customers, which is a notable concern in outsourcing relationships.

Which of the Following Is Not True Regarding Outsourcing