Hilton helps others run their hotels by providing the management know-how. This type of joint venture is known as ________.
A) contract manufacturing
B) licensing
C) management contracting
D) joint ownership
E) direct investment

Question

Quizplus · Accepted Answer

Hilton's involvement in helping others run their hotels by providing management knowledge is known as management contracting. In this type of joint venture, a company such as Hilton provides management services to another company that operates the physical assets, and in this case, the hotels. Contract manufacturing refers to businesses that outsource their manufacturing processes, licensing involves allowing another company to use your intellectual property, joint ownership involves two or more entities sharing ownership of a business, and direct investment refers to a company investing in a foreign business and maintaining full control over its operations.

Hilton Helps Others Run Their Hotels by Providing the Management