_____ Involves Contracting with Independent Suppliers Outside the Organization (Domestic

question 17

Multiple Choice

_____ involves contracting with independent suppliers outside the organization (domestic or foreign) to provide products or services that were performed inside the organization.

• A)Re-shoring
• B)Nearshoring
• C)Outsourcing
• D)offshoring
• E)International purchasing

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield of government bonds from stable governments.

Market Risk Premium

This is the extra return expected by investors for holding a risky market portfolio instead of risk-free assets.

Security Market Line

A line that represents the risk versus expected return of the market; used to assess the performance of investments compared to the market.

Systematic Risk

The inherent risk associated with the overall market or economy that cannot be eliminated through diversification.