The Primary Motivation Behind Out-Sourcing Is to Provide the Firm

question 79

True/False

The primary motivation behind out-sourcing is to provide the firm with an alternative source of supply in the event that its primary supplier is unable to meet the firm's raw material or component needs.

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Definitions:

Zero-Coupon Bonds

Bonds that don't pay periodic interest payments, but are sold at a discount from their face value and mature at that face value.

Expected Interest Rate

The anticipatory rate at which interest is projected to be applied on borrowed funds or received on investments.

Premium To Par

The amount by which the price of a bond exceeds its principal (or par) value, often occurring when the bond's interest rate is higher than current market rates.

Coupon Rate

The per annum interest yield on a bond, shown as a percentage of its principal amount.