Distinguish Between Captive Sourcing and Contract Manufacturing

question 91

Essay

Distinguish between captive sourcing and contract manufacturing.

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Definitions:

Maturity Date

The date on which a financial obligation or investment becomes due for payment.

American Calls

Options contracts that allow the buyer to exercise the option to buy the underlying asset at the strike price at any time before expiration.

Option Expiration

The date on which an options contract becomes void and the holder no longer has rights for which it provides.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.