The Process Where a Firm Contracts Out a Business Process

question 16

Multiple Choice

The process where a firm contracts out a business process or activity to an external supplier is known as _________.

• A)outsourcing
• B)vertical integration
• C)horizontal diversification
• D)market penetration

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Definitions:

Sarbanes-Oxley Act

A United States federal law that established auditing and financial regulations for public companies.

Accounting Scandals

Incidents involving deliberate manipulation of financial statements or other serious misconduct by companies or individuals within them.

Ethical Norms

Accepted standards of behavior or moral principles guiding individual or group actions in various contexts.

Reputation

The widespread belief about the characteristics or qualities of a person, organization, or thing, which can influence public opinion and behavior.