An Organization That Outsources Still Retains Ownership of an Outsourced

question 21

True/False

An organization that outsources still retains ownership of an outsourced process or function.

---

Definitions:

Operating Activities

Cash flows directly related to earning income, including day-to-day transactions like selling products and paying wages.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity, as reported in a company’s cash flow statement.

Non-current Liability

Liabilities that are not due within the next twelve months, such as long-term loans, bonds payable, and deferred tax liabilities.

Short-term Loans

Loans scheduled to be repaid in less than a year, typically used for immediate cash flow needs or small-scale expenses.