Which of the Following Is an Advantage of Management Contracting

question 36

Multiple Choice

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.

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Definitions:

Earrings

Jewelery pieces worn on the ear, typically fastened through a hole pierced in the earlobe or another external part of the ear.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the cost per unit.

Total Cost

The sum of all expenses incurred in the production of a good or service, including both fixed and variable costs.

Marginal Cost

The expense associated with manufacturing an extra unit of a product.