Outsourcing Refers To

question 8

Multiple Choice

Outsourcing refers to:

• A) contracting with another organization to perform a broad set of services.
• B) licensing another organization to perform an organization's business in a different country.
• C) using a temporary or contract employee to fill a single job vacancy.
• D) buying the necessary raw materials needed to perform a business from external agencies.
• E) moving operations away from the home location to bring about cost savings.

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Definitions:

Inventory

The raw materials, work-in-process products, and finished goods that a company holds for the purpose of sale in the near future.

Marketable Securities

Financial instruments that can be easily converted into cash, such as stocks, bonds, or treasury bills.

Operating Activities

Activities that relate directly to the primary business operations of a company, such as selling products or providing services.

Financing Activities

Transactions that involve raising capital for the business and repaying investors, such as issuing debt and equity or paying dividends.