A firm facing a make-or-buy decision must decide whether to meet its needs internally or to acquire goods or services from external sources.Buying from external sources is often called
A)down-sizing.
B)right-sizing.
C)out-sourcing.
D)in-sourcing.

Question

Quizplus · Accepted Answer

Outsourcing refers to the process of obtaining goods or services from an external source instead of producing them internally. This can be a cost-effective strategy for a firm that does not have the resources or expertise to produce the goods or services in-house. Outsourcing can also allow a firm to focus on core competencies and strategic activities. However, outsourcing has potential drawbacks, such as loss of control over the quality of goods or services and the risk of dependence on external suppliers. Ultimately, the decision to make or buy depends on factors such as cost, quality, availability, and strategic goals.

A Firm Facing a Make-Or-Buy Decision Must Decide Whether to Meet