The Advantages of Contract Manufacturing Include All of the Following

question 19

Multiple Choice

The advantages of contract manufacturing include all of the following except:

• A)access to technical specifications by subcontractors.
• B)access to technical specifications by local manufacturers.
• C)a licensing firm can specialize in product marketing.
• D)limited commitment of financial resources.
• E)considerable commitment of management resources.

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Definitions:

Financial Distress Costs

Costs associated with a company's financial trouble leading to bankruptcy or restructuring, including legal fees, loss of goodwill, and disruption of operations.

Corporate Default

The failure of a company to fulfill its financial obligations, such as missing a debt payment or failing to repay a loan as agreed.

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting business, such as wages, rent, and materials.

Restructuring

The process of reorganizing a company's structure, finances, or operations to improve efficiency or to adapt to new market conditions.