This Type of Outsourcing Is the Movement of a Business

question 55

Multiple Choice

This type of outsourcing is the movement of a business process (in whole or in part) done at a company to another company located in a lower cost setting within the same country.

• A) Insourcing
• B) Rural sourcing
• C) Nearshoring
• D) Offshoring

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Definitions:

NPV

Net Present Value, a method used in investing to calculate the difference between the present value of cash inflows and outflows over a period of time.

Required Rate Of Return

The minimum return that an investor is willing to accept for owning a company's stock, given its risk.

Cash Flows

The total amount of money being transferred into and out of a business, particularly concerning liquidity.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.