Companies such as Marriott and Hyatt sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for them in foreign countries.
A) joint ventures
B) franchising
C) contract manufacturing
D) management contracts
E) hotel management licensing

Question

Quizplus · Accepted Answer

The description in the question fits the definition of management contracts, where a company provides management services to another company or individual for a fee. In this case, Marriott and Hyatt are managing foreign hotels for their owners through these contracts. Joint ventures involve two or more companies coming together to create a new entity, franchising involves licensing a brand and business model to individuals or companies, contract manufacturing involves outsourcing production to third-party manufacturers, and hotel management licensing is not a commonly used term in the industry.

Companies Such as Marriott and Hyatt Sell a Variation of the Licensing