ACCA Applied Knowledge · Business and Technology · Technological factors
A manufacturer installs robots on its assembly line to carry out repetitive welding tasks that were previously done by employees. Which term best describes this use of technology in the production process?
The best term is automation. The business is replacing repetitive human welding tasks with robots, which is the use of machines to perform work previously done by people. Outsourcing would involve an external provider, and franchising and vertical integration relate to business structure rather than production technology.
- AAutomationCorrect
- BOutsourcing
- CFranchising
- DVertical integration
Explanation
Automation is the use of machines or technology to perform tasks previously done by people, typically repetitive ones. Outsourcing would mean passing the work to an external supplier, which is not happening here. Franchising and vertical integration concern ownership and distribution structures, not production technology.
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