A Manufacturer of Automobile Component Parts That Has Turned Over

question 6

Multiple Choice

A manufacturer of automobile component parts that has turned over all transportation functions to an independent third party in its supply chain has engaged in:

• A) creating a dependent materials-handling system
• B) outsourcing
• C) removing entry barriers
• D) task deployment
• E) channel rotation

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Definitions:

Government Revenue

The total money received by a government from taxes and non-tax sources to finance government operations and services.

Excise Tax

A tax applied to specific goods or services, often included in the price of products such as tobacco, alcohol, and fuel.

Average Tax Rate

The percentage of the total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Personal Income

The total amount of income received by an individual or household from all sources before taxes and deductions.