Which of the following is an advantage of management contracting?
A) It involves the least change 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 provides immediate income as the contracting firm is paid for managing the operations of the managed company.

Which of the Following Is an Advantage of Management Contracting