Final answer:
A) Outsourcing is the assignment of an internal function to an outside vendor. It involves hiring outside contractors to perform tasks previously done internally. Outsourcing can provide benefits like cost savings and access to specialized skills, but it also has potential drawbacks.
Step-by-step explanation:
The assignment of an internal function to an outside vendor is known as outsourcing. This involves hiring outside contractors to perform tasks that were previously done by the company internally. Outsourcing can include offshoring, which is the practice of moving operations overseas to access cheaper labor markets.
For example, a company may decide to outsource their customer service department to a call center in another country where labor costs are lower.
Outsourcing can provide several benefits to companies, such as cost savings, access to specialized skills, and increased flexibility. However, it also has potential drawbacks, such as loss of control over the outsourced functions and potential quality issues.