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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) St... 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 term that describes the strategy of employing external contractors to provide payroll services is Outsourcing. This is a business practice where a company hires outside firms to handle work that is traditionally done internally, thereby aiming to reduce costs and focus on core business functions.