Risks Involved in a Project Can Be Transferred by Outsourcing

question 119

True/False

Risks involved in a project can be transferred by outsourcing a particular component of the project and requiring performance bonds.

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Definitions:

Credit Balance

A credit balance occurs when the total credits in an account exceed the debits, often seen in liability, revenue, and equity accounts.

Capital Account

An account on a company's balance sheet that represents the owners' stake or equity in the company.

Debit Balance

A financial situation where the total sum of debits in an account exceeds the total sum of credits, indicating assets or expenses.

Utility Company

A company that provides essential public services, including electricity, gas, water, and sewage services.