Management contracts are attractive because they allow firms to earn additional revenues without incurring any investment risks or obligations.

Name: Management contracts are attractive because they allow firms to earn additional revenues without incurring any investment risks or obligations.
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Question

Quizplus · Accepted Answer

Management contracts enable firms to provide managerial expertise to another company for a fee, without having to invest directly in that company's assets, thus avoiding investment risks and obligations.

Management Contracts Are Attractive Because They Allow Firms to Earn