KPL Inc Is an Outsource Vendor

Multiple Choice

KPL Inc. is an outsource vendor. It handles the recruiting process for Numero Uno Computers. KPL recently changed its business strategy to a more profit-oriented one. This modification would require the company to charge more for its services. This change will be a ________ risk for Numero Uno Computers.

A) de facto sole source
B) benefits outweighed by long-term costs
C) no easy exit
D) loss of control
E) high unit cost