Which of the following is a drawback of management contracting?
A)Management contracting prevents the company from setting up its own operations for a period of time.
B)Management contracting is a high-risk method of getting into a foreign market.
C)Management contracting yields income much later on in the process.
D)Management contracting does not provide the option of buying shares in the managed company.
E)The domestic firm lacks the management know-how.

Question

Quizplus · Accepted Answer

Management contracting prevents the company from setting up its own operations for a period of time because it relies on the expertise of the contracted management team, which may limit the company's ability to establish its own presence in the market.

Which of the Following Is a Drawback of Management Contracting