In a Practice Known as ____,Internal Users May Try to Negotiate

question 14

Multiple Choice

In a practice known as ____,internal users may try to negotiate contracts themselves.

• A) strategic sourcing
• B) spend management
• C) backdoor buying
• D) outsourcing
• E) internal sourcing

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Definitions:

Annual Payroll

The total amount of wages, salaries, bonuses, and other compensation paid by a business to its employees over a year.

Business Days

Days of the week excluding weekends and public holidays, typically Monday through Friday, when business operations are conducted.

Fixed Charge Coverage

A financial metric evaluating how well a company can pay off its fixed expenses, like interest and leases, using its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Times Interest Earned Ratio

A measure of a company's ability to meet its interest obligations, calculated as earnings before interest and taxes divided by interest expense.