Post Utme Veritas University 2023 Commerce Question 25

Practice objective / multiple choice question 25 from the 2023 Post Utme Veritas University Commerce examination.

Post Utme Veritas University 2023 Commerce Objective / Multiple Choice
Question 25 POST_UTME_VERITAS_UNIVERSITY • 2023 • COMMERCE • objective

A company is considering outsourcing its production to a foreign country. The company has evaluated the costs and benefits of outsourcing and has determined that it will be more cost-effective than producing the product domestically. However, the company is concerned about the potential risks associated with outsourcing, including the risk of intellectual property theft, cultural differences, and regulatory requirements. What steps can the company take to mitigate these risks?

Answer Options

Correct Answer A. The company can mitigate these risks by conducting thorough market research, establishing a strong relationship with the foreign supplier, and providing adequate quality control measures.
B. The company can mitigate these risks by ignoring the potential risks and outsourcing the production to the foreign country as quickly as possible.
C. The company can mitigate these risks by partnering with a local company in the foreign country to handle the production and quality control of the product.
D. The company can mitigate these risks by focusing on the domestic market and avoiding the foreign market altogether.
Correct Answer
A
Correct Option:
The company can mitigate these risks by conducting thorough market research, establishing a strong relationship with the foreign supplier, and providing adequate quality control measures.

About This Question

This is Post Utme Veritas University 2023 Commerce Question 25. It is one of the objective questions from the 2023 Post Utme Veritas University Commerce examination.

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