Passage Summary: A president says that whenever you hire another company to make your stuff, you lose a bit of control over the quality. Their company does hire others, but only those who keep a tight grip on their own manufacturing quality.

Reasoning: Subcontracting inherently reduces the primary company's control over quality, even if the subcontractor itself maintains perfect internal control.

Analysis: We must combine the two statements to find a logical deduction. If subcontracting always leads to a loss of control, and this company does subcontract, then this company must have lost some control over the quality of those specific products. The fact that the subcontractors have 'complete control' doesn't negate the president's first rule; it just means the subcontractor is doing their best on their end while the president's company has still stepped back from the process.