Which of the following is an advantage of management contracting?
A) It involves the fewest changes in a company's product lines.
B) It allows a contracting firm to set up its own operations at the beginning of the contract.
C) It is the simplest way to enter a foreign market.
D) It yields income from the beginning of the contract.
E) It gives a contracting firm an option to buy shares in the managed company immediately.

Question

Quizplus · Accepted Answer

Management contracting allows the contracting firm to start earning income at the beginning of the contract, which is an advantage compared to other forms of entry modes such as joint ventures or wholly owned subsidiaries.

Which of the Following Is an Advantage of Management Contracting