Question

Managers have obligations to a wide variety of stakeholders such as shareholders, employees, and customers. When considering outsourcing production to offshore suppliers, managers have to weigh:

(I) cost benefits that might make shareholders wealthier.
(II) quality issues that might make firms less productive and/or products riskier.
(III) the investments already tied up in relationships with existing suppliers.

A. I

B. II

C. III

D. I and II only

E. I, II, and III

Answer

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