CAPM (Certified Associate in Project Management) Practice Exam

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What factors may influence make-or-buy decisions?

  1. Core capabilities of the organization, value delivered by vendors, risks, internal vs vendor capability

  2. Price comparisons only

  3. Product color and design preferences

  4. Vendor location and size

The correct answer is: Core capabilities of the organization, value delivered by vendors, risks, internal vs vendor capability

Factors that may influence make-or-buy decisions include core capabilities of the organization, value delivered by vendors, risks involved, and the comparison between internal capabilities and vendor capabilities. These factors are crucial in determining whether it is more advantageous for a company to produce a product or service internally or to outsource it to a vendor. Price comparisons alone (option B), product color and design preferences (option C), and vendor location and size (option D) are not the primary or most significant factors that influence make-or-buy decisions in project management.

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