An Approach That Requires Purchasing to View the Entire World

question 270

Multiple Choice

An approach that requires purchasing to view the entire world as a potential source for parts, components, services, and finished goods is called:

• A) Global sourcing
• B) Global resourcing
• C) Globe of suppliers
• D) Global foundation

---

Definitions:

Fair Value

The cost expected to be received for an asset sale or to be paid for transferring a liability during a well-organized interaction between market actors as of the valuation moment.

Subsidiary's Equity

The portion of equity (capital and reserves) in a subsidiary company that is attributable to its owners, including both parent and non-controlling interests.

Consolidation Adjusting Entries

Adjustments made in accounting records to remove the effects of intercompany transactions during the consolidation process for a group’s financial reporting.

Accounting Periods

Defined time frames in which financial transactions are recorded and financial statements are prepared.