Outsourcing Is the Strategy of Paying Suppliers and Distributors to Perform

question 129

True/False

Outsourcing is the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services.

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Definitions:

Operating Expenses

Costs associated with running a business's day-to-day operations, excluding the cost of goods sold.

Income Summary

An account in which revenues and expenses are summarized, used in the closing process to prepare the accounts for the next period.

Net Loss

The amount by which total expenses exceed total revenues for a business, indicating a financial loss over a specific period.

Capital

The financial resources that businesses use to fund their operations and growth.