Work that is done for a company by people other than the company's full-time employees is referred to as ________.
A) insourcing
B) farming-out
C) personnel extension
D) outsourcing
E) capacity enhancement
Question 2
For startup firms, some products are under development for years before they generate earnings. The upfront costs often exceed a firm's ability to fund these activities on its own.
Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?
A) Cash flow challenges
B) Marketing costs
C) Capital investments
D) Personnel costs
E) Lengthy product development cycles
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