Which Termination Clause Allows an Organization to End the Outsourcing

question 14

Multiple Choice

Which termination clause allows an organization to end the outsourcing agreement and go to court to collect compensation for the damages caused?

• A)Termination for convenience
• B)Termination for financial crises
• C)Termination for failure to meet service and performance levels
• D)Termination for material breach of contract

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Definitions:

Initial Direct Costs

Expenses directly associated with acquiring or originating a loan or insurance policy, which may include processing and sales commissions.

Revenue Recognized

The process of recording revenues in the financial statements when they are earned, which may not coincide with when the cash is received.

Collectibility

The likelihood or ability of a company to collect its accounts receivable from customers.

Sales Price

The amount of money for which a product or service is sold in the market.