Factors Affecting the Decision to Outsource


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question 1 of 3

Which of the following are benefits of outsourcing?

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1. Which of the following is why it is sometimes cheaper for an outside company to make your product?

2. Which of these are deciding factors for companies when deciding to outsource?

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About This Quiz & Worksheet

In this quiz, we'll gauge how well you understand the concepts that deal with making decisions when it comes to outsourcing. These multiple-choice questions will ask you to apply what you know about outsourcing choice factors to different situations.

Quiz & Worksheet Goals

This quiz will test your knowledge of:

  • Outsourcing benefits
  • Reasons why its sometimes beneficial to have an outside company make your product
  • Deciding factors when it comes to outsourcing
  • Applied knowledge of outsourcing logistics
  • Meaning of outsourcing

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related lesson on what to consider when deciding whether to outsource or not
  • Making connections - use understanding of the outsourcing concept to see its benefits
  • Problem solving - make sure you can read a sample business scenario and determine whether the company should outsource or not
  • Knowledge application - use your knowledge to answer questions about outsourcing

Additional Learning

If you would like to learn more about outsourcing, then you would greatly benefit from taking a look at our lesson, Factors Affecting the Decision to Outsource. In that lesson, our professional instructors will connect the basic concepts with real world applications to strengthen your understanding of when to outsource. We'll take a look at:

  • Why companies choose to outsource their products or services
  • How demand affects a company's decision to outsource
  • What role profits play in a company's decision to outsource and how they are calculated
  • Ways outsourcing can cover a company's weakness