Outsourcing Is The

question 131

Multiple Choice

Outsourcing is the:

• A) spinning off of a value-creating activity to create a new firm.
• B) selling of a value-creating activity to other firms.
• C) purchase of a value-creating activity from an external supplier.
• D) use of computers to obtain value-creating data from the Internet.

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Definitions:

Net Cash Flow

The difference between a company's cash inflows and outflows within a given period.

CCA Class

Refers to a classification within the Capital Cost Allowance system in Canada, dictating the depreciation rate for tax purposes on different types of assets.

Book Value

The total worth of a company's assets after subtracting its liabilities, frequently employed to evaluate the financial condition of a company.

Equipment Cost

Equipment cost refers to the total expense incurred from purchasing equipment, including acquisition cost, delivery charges, setup fees, and any other expenses associated with making the equipment ready for use.