Question

Penske Corp. (joint venture with GE) contracts the physical distribution of activities with third parties. This is also known as:_________.

Answer 1

Answer:

Outsourcing

Explanation:

In Business management, outsourcing can be defined as a process which involves an agreement between two companies that allows for the provision of services or job functions by another.

Hence, when a company is outsourced, it engages the service of another company (third-party) to perform some of its duties rather than the use of an in-house department or employees to handle them.

In this scenario, Penske Corp. (joint venture with GE) contracts the physical distribution of activities with third parties. Thus, this is also known as outsourcing.

The outsourcing firm is saddled with the responsibility of physically distributing the goods or services of the outsourced company.