Offshoring Entails

question 184

Multiple Choice

Offshoring entails:

• A)being controlled by a board of directors.
• B)sourcing parts outside of the country.
• C)having a limited life.
• D)assigning various functions to outside organizations.

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Definitions:

Present Value

The actual value now of future money amounts or cash inflows based on a defined rate of yield.

Earnings Rate

The rate at which a company or investment generates income, usually expressed as a percentage of the investment or the company's capital.

Compound Interest

Interest on a deposit or loan that is calculated based on the initial amount along with the total of all interest accumulated in earlier periods.

Present Value Index

A financial calculation that allows the comparison of the present value of cash inflows to the present value of cash outflows.