As a Way to Save Costs, the Foundry Inc

question 7

Multiple Choice

As a way to save costs, The Foundry Inc. set up a factory in a foreign country to produce the component parts it uses in the farm equipment it manufactures. The technology at this factory is kept to a minimum and management has no say in purchasing or production decisions. What type of factory is Foundry Inc. using?

• A) server
• B) outpost
• C) contributor
• D) source
• E) offshore

---

Definitions:

Federal Depository Bank

A financial institution that is authorized to hold deposits for the Federal Reserve System and process related transactions.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, including social security and Medicare taxes in the United States.

Contingent Liabilities

Potential financial obligations that may occur depending on the outcome of a future event.

Future Event

A prospective occurrence or situation that has yet to happen, often considered in planning and strategy contexts.