SOLVED

Section 2Â Â Sourcing Issues: Make-or-Buy vs. Outsourcing 1) Outsourcing refers to transferring a firm’s activities that have traditionally been internal to external suppliers. 2) Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors. 3) The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally. 4) Outsourcing: A) transfers traditional internal activities to outside vendors. B) utilizes the efficiency that comes with specialization. C) allows the outsourcing firm to focus on its key success factors. D) All of the above are true of outsourcing. E) None of the above is true of outsourcing. 5) The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is: A) a standard use of the make-or-buy decision. B) not allowed by the ethics code of the Supply Management Institute. C) offshoring. D) outsourcing. E) keiretsu. 6) The ________ decision involves choosing between producing a component or a service internally and purchasing it externally. 7) Transferring to external vendors a firm’s activities that have traditionally been internal is known as ________.