Which of the Following Is the Best Description of Outsourcing

question 100

Multiple Choice

Which of the following is the best description of outsourcing?

• A) Any activity that adds value to some input by transforming it into an output for an internal or external customer
• B) An approach by which firms move away from department-oriented organization and toward process-oriented team structures that cut across old departmental boundaries
• C) The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials and resources
• D) The strategy of using the Internet and word-of-mouth marketing to spread product information
• E) The strategy of owning the means by which an organization produces goods or services

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Definitions:

Cash Receipts

Money received by a business or organization, typically documented during accounting periods.

Internal Control Principles

Guidelines meant to safeguard assets, ensure financial report accuracy, and promote operational efficiency.

Establishment Of Responsibility

An internal control principle focusing on assigning responsibility to specific employees to prevent fraud and errors.

Segregation Of Duties

An internal control measure that splits responsibilities among different people to reduce the risk of fraud and errors in the financial processes.