Which of the Following Statements Is True of Foreign Outsourcing

question 15

Multiple Choice

Which of the following statements is true of foreign outsourcing?

• A) It drives down the cost of production.
• B) It is a specialized type of licensing.
• C) It helps circumvent government restrictions on importing in closed markets.
• D) It is the most basic level of international market development.

---

Definitions:

Premium on Bonds Payable

The excess of a bond's selling price over its principal amount.

Debenture Bonds

Fixed-interest unsecured loans issued by companies, backed only by the creditworthiness and reputation of the issuer, rather than by a lien on any specific asset.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to determine investment value.