Question

A practice whereby a particular part of the production process or component of a service industry is contracted out to be performed by a third party is called

• A. Business Process Outsourcing (BPO)
• B. Moonlighting
• C. Virtual Business
• D. Third party evaluation/Impact assessment

Hint:

BPO means outsourcing business tasks to an external service provider.

Answer 1

The Correct Option is A

Concept:
Modern businesses often transfer certain operations or services to external agencies to reduce costs and improve efficiency.

Step 1:
Outsourcing means assigning specific business tasks or services to an outside company or third party.

Step 2:
Business Process Outsourcing (BPO) refers to contracting business operations such as customer support, payroll, or data processing to specialized external firms.

Step 3:

• Moonlighting means doing an additional job besides the primary job.
• Virtual business refers to online business operations.
• Third party evaluation is related to assessment and auditing.

Step 4:
Hence, the correct term is Business Process Outsourcing (BPO). \[ \boxed{\text{(1) Business Process Outsourcing (BPO)}} \]