A USCompany That Hires Another U

question 21

Multiple Choice

A U.S.company that hires another U.S.company,such as Automatic Data Processing Corporation (ADP) to process all of its corporate payroll functions is engaging in _____.

• A) outsourcing
• B) offshoring
• C) importing
• D) exporting
• E) franchising

---

Definitions:

Participative Decision Making

Decision making in which individuals who are affected by decisions influence the making of those decisions.

Bounded Rationality

A concept that decision-makers are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes.

Preferences

Individual choices or inclinations towards certain options, objects, or outcomes over others.