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To reduce costs, a business employs external contractors to provide payroll services - HSC - SSCE Business Studies - Question 4 - 2008 - Paper 1
Question 4
To reduce costs, a business employs external contractors to provide payroll services. Which term describes this strategy? (A) Outsourcing (B) Diversification (C)... show full transcript
Worked Solution & Example Answer:To reduce costs, a business employs external contractors to provide payroll services - HSC - SSCE Business Studies - Question 4 - 2008 - Paper 1
Step 1
Which term describes this strategy?
Answer
The correct term that describes the strategy of employing external contractors to provide payroll services is Outsourcing. This practice refers to the business strategy where companies delegate specific functions, such as payroll, to external service providers. This approach is typically employed to reduce costs, improve efficiency, and allow the business to focus on its core functions.