A Firm That Engages in Strategic Outsourcing Typically

question 82

Multiple Choice

A firm that engages in strategic outsourcing typically

• A) increases its internal transaction costs.
• B) reduces its level of vertical integration.
• C) reduces its level of external transaction costs.
• D) increases its level of horizontal integration.

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Definitions:

Cash on Hand

The amount of liquid currency that a person or business has available for immediate use.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, prompted by financial scandals.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period of time.

Internal Control Procedures

These are policies and procedures put in place by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.