Robert's Company Contracted with an Outside Business to Provide Technical

question 186

Multiple Choice

Robert's company contracted with an outside business to provide technical and computer support. This is an example of ______.

• A) downsizing
• B) outsourcing
• C) employee empowerment
• D) restructuring the organization

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Definitions:

Cash Balance

The amount of cash a company has on hand at any given time, reflecting its immediate liquidity position.

Capital Expenditure

Funds used by an organization to acquire or upgrade physical assets to improve its long-term capacity and efficiency.

Net Cash Inflow

The amount of cash that flows into a company subtracting the cash that flows out during a specific time period.

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender, often used to offset the cost of a loan.