Which of the following is an advantage of management contracting?
A) It gives a contracting firm an option to buy shares in the managed company immediately.
B) It is the simplest way to enter a foreign market.
C) It involves the fewest changes in a company's product lines.
D) It allows a contracting firm to set up its own operations at the beginning of the contract.
E) It yields income from the beginning of the contract.

Question

Quizplus · Accepted Answer

Management contracting allows a firm to earn income from the start of the contract by managing operations for a foreign company without having to invest in the foreign market directly.

Which of the Following Is an Advantage of Management Contracting