For the provider, management contracts offer the advantage of ________.
A)receiving income without making a capital outlay
B)increasing their merchandise exports
C)reducing their global taxes
D)better access to raw materials

Question

Quizplus · Accepted Answer

With management contracts, the provider (usually a service provider) can earn income without having to invest in a capital outlay. In other words, they can provide their expertise and services without having to own the assets or facilities they are managing. This can be a cost-effective way for providers to expand their business and generate revenue. The other options (increasing merchandise exports, reducing global taxes, better access to raw materials) are not directly related to the advantages of management contracts for service providers.

For the Provider, Management Contracts Offer the Advantage of ________