Local Sourcing

question 8

Multiple Choice

Local sourcing:

• A)Reduces delivery costs.
• B)Is called "nearshoring."
• C)Is used when cost is the primary objective.
• D)Takes advantage of lower trade barriers from trade agreements.

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Definitions:

Pro Forma Statements

Financial statements that project the future financial performance of a company, based on certain assumptions.

Long-Term Debt

Debt with a maturity of more than one year, used to finance or capitalize lasting investments.

Recoveries of Net Working Capital

The process of reclaiming cash invested in net working capital components, such as accounts receivable, and reducing accounts payable.

Operating Cash Flow

The amount of cash generated by a company's normal business operations, used to assess the company's ability to generate sufficient positive cash flow to maintain and grow its operations.