SSCE HSC Business Studies Operations strategies: Which of the following best desc

Which of the following best describes outsourcing? (A) Leasing an asset from another business (B) Management considering stakeholders' needs (C) Purchasing support services from another business (D) Establishing a close long-term relationship between businesses - HSC - SSCE Business Studies - Question 19 - 2007 - Paper 1

Question 19

Which of the following best describes outsourcing? (A) Leasing an asset from another business (B) Management considering stakeholders' needs (C) Purchasing suppor... show full transcript

Worked Solution & Example Answer:Which of the following best describes outsourcing? (A) Leasing an asset from another business (B) Management considering stakeholders' needs (C) Purchasing support services from another business (D) Establishing a close long-term relationship between businesses - HSC - SSCE Business Studies - Question 19 - 2007 - Paper 1

Step 1

Identifying the Definition of Outsourcing

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Answer

Outsourcing refers to the practice where a business contracts out processes or services to another business, rather than handling them internally.

Step 2

Evaluating the Options

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Answer

Now, we'll examine each option to determine which best fits the definition of outsourcing:

(A) Leasing an asset from another business: This describes leasing, not outsourcing.
(B) Management considering stakeholders' needs: This is related to stakeholder management, not outsourcing.
(C) Purchasing support services from another business: This directly aligns with outsourcing, as it involves obtaining functions from an external provider.
(D) Establishing a close long-term relationship between businesses: While this might be part of a strategic partnership, it doesn't specifically describe outsourcing.

The best description of outsourcing from the given options is therefore (C).

Identifying the Definition of Outsourcing

Evaluating the Options

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