Excite Enterprises, a Corporation of Amusement Parks, Uses an Accounting

question 310

Multiple Choice

Excite Enterprises, a corporation of amusement parks, uses an accounting firm to handle the payroll and tax functions for the company. Using the services of another firm in this manner is an example of

• A) outsourcing.
• B) functional reassignment.
• C) core competencies.
• D) benchmarking.

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Definitions:

Market Price

The price for an asset or service in the market at the present time.

Interest Rate Risk

The risk that changes in interest rates will negatively affect the value of an investment, especially those with fixed interest rates.

Coupon

The interest rate stated on a bond when it's issued, which represents the annual interest payment made to bondholders.

Payable Semiannually

This term indicates that a payment, often in the context of bond interest or dividends, is made twice a year.