Some Small Firms Choose to Outsource Internationally in Order to

question 106

Multiple Choice

Some small firms choose to outsource internationally in order to

• A) avoid domestic taxes.
• B) avoid competition from other U.S. companies.
• C) cut costs and access talented foreign employees.
• D) take advantage of legal loop-holes in foreign countries.

---

Definitions:

Installment Sales

A method of sale where the buyer makes payments towards the total sale price in installments over time, while the seller recognizes revenue as payments are received.

Asset Impairment Test

A procedure carried out to determine if an asset's carrying amount is not recoverable and exceeds its fair value, necessitating a write-down to its fair value.

Deferred Tax Asset

A tax benefit stemming from temporary differences between accounting and tax calculations, which will result in deductible amounts in future tax payments.