Which of the following statements is
A) Outsourcing decreases the extent of a company's vertical integration.
B) Reputation of the supplier is a critical issue in an outsourcing decision.
C) An outsourcing decision involves a purchase offer from a customer at a lower-than-normal selling price.
D) Outsourcing decreases the extent of a company's vertical integration and the reputation of the supplier is a critical issue in an outsourcing decision.

Question

Quizplus · Accepted Answer

A company that uses vertical integration controls the full range of activities from acquiring raw materials to distributing goods and services.Outsourcing reduces the level of vertical integration,passing some of a company's control over its products to outside suppliers.The reliability of the supplier is critical to an outsourcing decision.An unscrupulous supplier may lure an unsuspecting manufacturer into an outsourcing decision using low-ball pricing.Once the manufacturer is dependent on the supplier,the supplier raises prices.If a price sounds too good to be true,it probably is too good to be true.Other potential problems include product quality and delivery commitments.

Which of the Following Statements Is