Marriott builds a hotel for $34 million and sells it to a banking firm for $52 million. Marriott charges the banking firm 2-4 % of gross revenues to operate the hotel. This business transaction is known as

Question

Quizplus · Accepted Answer

This transaction is a management contract, where Marriott operates the hotel for the banking firm in exchange for a percentage of the gross revenues.

Marriott Builds a Hotel for $34 Million and Sells It