Which of the following is an advantage of management contracting?
A)Management contracting involves the least change in the company's product lines.
B)The company can set up its own operations simultaneously.
C)Management contracting is the simplest way to enter a foreign market.
D)Management contracting yields income from the beginning.
E)Management contracting gives the contracting firm an option to buy some shares in the managed company immediately.

Question

Quizplus · Accepted Answer

Management contracting yields income from the beginning, as the contracting firm is paid a fee for managing the operations of the company. This allows for a quicker return on investment compared to other forms of market entry such as joint ventures or greenfield investments.

Which of the Following Is an Advantage of Management Contracting