While Companies Now Outsource Many Services,the Initial Reason Companies Started

question 53

Multiple Choice

While companies now outsource many services,the initial reason companies started outsourcing the manufacturing of components in the 1970s was to minimize

• A)Transportation costs..
• B)Production costs
• C)Inspection costs.
• D)Managerial costs.
• E)Accounting costs.

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Definitions:

Default

Failure to fulfill an obligation, especially failure to meet a financial commitment or appear in a court of law.

Prepayment Penalty Clause

A provision in a contract that imposes a penalty on a borrower for paying off a loan before its maturity date.

Mortgage Loan

A mortgage is a loan that is secured by tangible real estate property, evidenced through a mortgage note that demonstrates both the loan's existence and the property's lien.

Penalty

A sum inserted into a contract not as a measure of compensation for its breach but rather as punishment for a default. The agreement as to the amount will not be enforced, and recovery will be limited to actual damages.