For Professional Services Which Are Needed Only Occasionally and Require

question 351

True/False

For professional services which are needed only occasionally and require special skills, it is usually better for a firm to have its own employees provide them than to use outsiders.

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Definitions:

Corporate Bond

A debt security issued by a corporation to raise funding. It obligates the issuer to pay interest and repay the principal at a later date.

Bondholder

An individual or entity that owns bonds issued by corporations, governments, or other institutions, which means they have lent money to the issuer in exchange for interest payments and the return of principal at maturity.

Firm's Profits

The financial gain achieved by a company after subtracting all its costs from its total revenues.

Capital

Economic resources used in the production of goods, including physical assets like machinery, buildings, or human skills and knowledge.