Why Is It Important to Outsource Transactional Work

question 29

Multiple Choice

Why is it important to outsource transactional work?

• A)It adds value to non-core activities.
• B)It frees up management's time.
• C)It reduces transaction time.
• D)It is repetitive,predictable,and easily duplicated.

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Definitions:

Price-Earnings Ratios

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

S&P 500 Index

An American stock market index based on the market capitalizations of 500 large companies listed on stock exchanges in the United States.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenues, highlighting the impact of fixed versus variable costs.

Profits

The financial gain achieved when the revenue generated from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.