A Company Based in India Performs the Routine Data Entry

question 10

Multiple Choice

A company based in India performs the routine data entry tasks for a Texas-based insurer. This arrangement is an example of

• A)global outsourcing.
• B)power distance.
• C)inverted sourcing.
• D)shared services.

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Definitions:

Disclosure Requirements

Regulatory mandates that obligate companies to reveal certain financial and operation-related information to ensure transparency and protect investors.

Financial Results

The outcome of a company's operations in terms of revenue, expenses, and net income for a specific period.

Income-smoothing

A strategy used by companies to stabilize their earnings over a period by using reserves to reduce fluctuations in income.

ASPE

Accounting Standards for Private Enterprises; a set of accounting guidelines for private companies in Canada.