PANCAT Company contracted MS Hashmi and Sons to prepare and maintain their accounting records. What is this contract called?

The situation described involves PANCAT Company hiring MS Hashmi and Sons to handle their accounting records, which is a classic example of outsourcing. Outsourcing refers to the practice of delegating specific business processes or tasks to an external service provider, in this case, the management of accounting functions. This approach allows companies to focus on their core operations while relying on specialists for particular functions, such as accounting.

In this context, the term "total outsource" emphasizes that PANCAT Company is completely handing over the responsibility of accounting to an external firm, rather than just sharing some tasks or retaining partial control. This can lead to cost savings, improved efficiency, and access to expertise that the company might not possess in-house.

While the other options might appear related to business contracts, they do not accurately capture the essence of the arrangement between PANCAT and MS Hashmi and Sons. A business deal is too vague and does not specify the nature of the contract. A franchise involves a system of business ownership where a franchisor licenses a franchisee to sell its products or services, which is not the case here. A royalty refers to a payment made for the continued use of a product or property, typically in contexts like copyright or patents, which also does not