Which of the following is included in determining if an AfBA entity continues being viable?

The viability of an Affiliated Business Arrangement (AfBA) entity can be assessed by examining its operational capabilities and the extent to which it is able to meet customer needs. When evaluating whether an AfBA remains viable, one important aspect is how essential functions are performed. If an AfBA entity is relying on outsourcing to perform these essential functions, it is indicative that it may not have the necessary infrastructure or resources to operate independently and maintain long-term viability.

Outsourcing can sometimes allow an entity to tap into specialized services or expertise that it does not possess internally, which can sustain operations. However, if an entity’s core functions are heavily outsourced rather than performed in-house, it may raise questions about its long-term sustainability and independence, ultimately impacting its viability.

In contrast, relying on minimal services or offering services exclusively to one provider would limit the entity's market reach and customer base, which could jeopardize its sustainability. Operating independently of parent companies is also a factor but does not address the core issue of essential functions and their execution. Thus, assessing essential functions performed by outsourcing directly speaks to the sustainability of the AfBA's operations.