The Procurement of Selected Value-Adding Activities, Including Production of Intermediate

question 64

Multiple Choice

The procurement of selected value-adding activities, including production of intermediate goods or finished products, from independent suppliers is known as ________.

• A) outsourcing
• B) franchising
• C) offshoring
• D) licensing

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Definitions:

Accrued Liability

A liability that has been incurred, is recognized on the balance sheet, and has not yet been paid.

Deferred Revenues

Deferred revenues are payments received by a company for goods or services that have not yet been delivered or performed, recognized as liabilities on the balance sheet.

Long Term Liabilities

Financial obligations of a company that are due beyond one year, including bonds payable, long-term loans, and lease obligations.

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle of the business.