Question

Captive sourcing is an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications."

a) True
b) False

Answer 1

Captive sourcing is an arrangement where a company partners with an independent supplier for manufacturing products according to specific requirements.

Step-by-step explanation:

Captive sourcing is an arrangement in which a company partners with an independent supplier to manufacture products according to specific requirements and guidelines. This allows the company to outsource part of its production process while maintaining control over the quality and specifications of the products.