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Q: Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Vernon, Inc., a small manufacturing company that has in recent years experienced a decline in its profits, plans to boost its profits by outsourcing those parts of its business that independent suppliers can provide at lower cost than Vernon can itself. Which of the following, if true, most strongly supports the prediction that Vernon's plan will achieve its goal? A. Among the parts of its business that Vernon does not plan to outsource are some that require standards of accuracy too high for most independent suppliers to provide at lower cost than Vernon can. B. Vernon itself acts as an independent supplier of specialized hardware items to certain manufacturers that formerly made those items themselves. C. Relatively few manufacturers that start as independent suppliers have been able to expand their business and become direct competitors of the companies they once supplied. D. Vernon plans to select the independent suppliers it will use on the basis of submitted bids. E. Attending to certain tasks that Vernon performs relatively inefficiently has taken up much of the time and effort of top managers whose time would have been better spent attending to Vernon's core business. OA: E My doubt is that it is not mentioned that the 'certain tasks' in option E are the ones that Vernon plans to outsource because if they aren't the same ones then this answer doesn't affect the conclusion at all. Aren't we assuming incorrectly, in marking E as correct, that the 'certain tasks', mentioned are the ones being planned to get outsourced? [/b]
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Q: Outsourcing is the practice of obtaining from an independent supplier a product or service that a company has previously provided for itself. Vernon, Inc., a small manufacturing company that has in recent years experienced a decline in its profits, plans to boost its profits by outsourcing those parts of its business that independent suppliers can provide at lower cost than Vernon can itself. Which of the following, if true, most strongly supports the prediction that Vernon's plan will achieve its goal? A. Among the parts of its business that Vernon does not plan to outsource are some that require standards of accuracy too high for most independent suppliers to provide at lower cost than Vernon can. B. Vernon itself acts as an independent supplier of specialized hardware items to certain manufacturers that formerly made those items themselves. C. Relatively few manufacturers that start as independent suppliers have been able to expand their business and become direct competitors of the companies they once supplied. D. Vernon plans to select the independent suppliers it will use on the basis of submitted bids. E. Attending to certain tasks that Vernon performs relatively inefficiently has taken up much of the time and effort of top managers whose time would have been better spent attending to Vernon's core business. OA: E My doubt is that it is not mentioned that the 'certain tasks' in option E are the ones that Vernon plans to outsource because if they aren't the same ones then this answer doesn't affect the conclusion at all. Aren't we assuming incorrectly, in marking E as correct, that the 'certain tasks', mentioned are the ones being planned to get outsourced? [/b]
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.