Outsourcing Production or Operating Activities Will Help in Improving the Cash

question 111

True/False

Outsourcing production or operating activities will help in improving the cash flow by reducing investment in physical assets.

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Definitions:

External Objective

Goals or targets set by an organization that relate to interactions with elements outside of the organization, such as market share or customer satisfaction.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. The obligated party is typically someone entrusted with the care of money or property, like a trustee or corporate officer.

Corporate Managers

Individuals responsible for making major decisions, overseeing daily operations, and implementing policies within a corporation to achieve organizational goals.

Law

A framework of norms established and applied by societal or state organizations to govern conduct.