Which of the Following Is Most Likely a Drawback of Contract

question 43

Multiple Choice

Which of the following is most likely a drawback of contract manufacturing?

• A) There are low chances of quickly starting the process.
• B) There is decreased control over the manufacturing process.
• C) There are significant political and economic risks involved.
• D) There is little opportunity of later forming a partnership.
• E) There is no possibility of buying out the local manufacturer.

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Definitions:

Subrogation

The process by which one party takes over the rights of another party, typically in the context of insurance claims.

Double Recovery

The act of obtaining compensation from two different sources for the same injury, loss, or damages, which is legally prohibited.

Third Parties

Individuals or entities that are not directly involved in a two-party agreement or transaction but may be affected by it or have interests in its outcome.

Co-insurance Clause

A provision in an insurance policy requiring the policyholder to bear a portion of the losses to the extent of a specified percentage.