An outsourcing strategy:
A. is nearly always a more attractive strategic option than merger and acquisition strategies.
B. carries the substantial risk of raising a company's costs.
C. carries the substantial risk of making a company overly dependent on its suppliers.
D. increases a company's risk exposure to changing technology and/or changing buyer preferences.
E. involves farming out certain value chain activities presently performed in-house to outside vendors.
Answer: involves farming out certain value chain activities presently performed in-house to outside vendors.