When a Business Employs an Outside Company to Handle All

question 151

Multiple Choice

When a business employs an outside company to handle all customer correspondence and phone calls,the business is ________ its customer service department.

• A)outsourcing
• B)branding
• C)multitasking
• D)shrinking

Recognize the importance of noncash investing and financing activities.

Understand the adjustments made to net income in calculating net cash flow from operating activities.

Know the last items to be reported on the statement of cash flows.

Understand the utility of the statement of cash flows in financial analysis.

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Definitions:

Investment Incentives

Benefits, typically in the form of tax reductions or credits, offered to encourage investment by individuals and corporations.

Loanable Funds

A term referring to all the money available for borrowing in the financial markets, from various sources including savings and investments.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, typically over a one-year period.

Investment

The act of spending money with the expectation of obtaining an additional income or profit, often involving financial investments, purchasing assets, or funding new business ventures.