Question

Carroll Inc., a cell phone manufacturer, has its assembly operations performed by Mortimer Corp., a firm that deals exclusively in assembling products for other companies. This scenario indicates that Carroll engages in the practice of ________________.a) outsourcing b) reengineering c) downsizing d) benchmarking e) acquiring

Answer 1

Answer:

A.

Explanation:

Outsourcing is defined as the act of obtaining semi-finished products, finished products or services from an outside company.

The advantages of outsourcing are:

-Flexibility. Additional workforce for the temporary requirements.

-Prices. Good acquired partnerships can lower the prices of labor and materials.

-Overhead costs. These costs can be extremely high, particularly for entrepreneurs. By outsourcing those functions, overhead costs are diminished.

-Focus. The main benefit of outsourcing not so crucial tasks for parts of your operations is that the extra time can be utilized towards the more value added objectives of the business.

-Operational risks. Keeps the operation going in case of employee turnover.