What Is an Arrangement by Which One Organization Provides a Service

question 92

Multiple Choice

What is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house?

• A) In-sourcing
• B) Outsourcing
• C) Business process outsourcing
• D) Offshore outsourcing

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Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to pay its interest expenses on outstanding debt with its earnings before interest and taxes.

Return On Total Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how efficiently a company uses its assets to generate profit.

Year 2

Typically refers to the second year in a given context, such as the second year of a business, investment, or educational program.

Gross Margin Percentage

A financial metric that measures the difference between revenue and cost of goods sold as a percentage of revenue.