The Process Where a Firm Contracts Out a Business Process

question 16

Multiple Choice

The process where a firm contracts out a business process or activity to an external supplier is known as _________.

• A)outsourcing
• B)vertical integration
• C)horizontal diversification
• D)market penetration

---

Definitions:

Term Insurance Policies

Life insurance policies that provide coverage at a fixed rate of payments for a limited period of time.

Borrowing Capacity

Borrowing capacity is the maximum amount of credit that a person or organization can obtain, determined by lenders based on the borrower’s financial health and credit history.

Outside Funds

Capital sourced from external investors or institutions, outside of the company’s existing financial resources, used for expansion, operations, or investment.

Debt

Money that is owed or due to be paid to someone else, often resulting from loans or credit.