What Is the Practice of Procuring from External Sources Services

question 67

Multiple Choice

What is the practice of procuring from external sources services or products that are normally part of an organization?

• A) nearshoring
• B) farshoring
• C) offshoring
• D) outsourcing
• E) backsourcing

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as an annual rate.

Long-Term Debt

Borrowings that are due for repayment in more than one year's time, used to finance a company's operations beyond its immediate needs.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your income for each tax bracket in which you qualify.

Interest Income

Earnings generated from the lending of money or from deposit funds in interest-bearing accounts.