_____ Is Best Described as Moving One or More Internal

question 102

Multiple Choice

_____ is best described as moving one or more internal value chain activities outside the firm's boundaries to other firms in the industry value chain.

• A) Strategic outsourcing
• B) Reverse engineering
• C) Forward integration
• D) Horizontal integration

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Definitions:

Tax Shield

A deduction allowed by the tax laws that lowers a person's or corporation's taxable income and thus their tax liability.

Incremental Cash Flow

Those cash flows that arise solely from the asset that is being evaluated.

Present Value

The current valuation of upcoming cash flows or a lump sum of money, discounted at an established rate of return.

Sunk Cost

An expense that has already been incurred and cannot be recovered, which should theoretically not influence any future financial decisions or strategies.