PRC-3 · Chapter 3 · Question 31 of 70
A bank decides to stop maintaining its own internal payroll department and instead hires an external specialist firm to calculate wages and process employee payments. What is this practice called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Outsourcing
Explanation
Outsourcing involves contracting non-core activities (like payroll processing) to specialized external vendors to improve efficiency or reduce costs.
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