Which of the Following Is a Drawback of Management Contracting

question 62

Multiple Choice

Which of the following is a drawback of management contracting?

• A) It requires a domestic firm to export its products to a foreign company.
• B) It does not provide the option of buying shares in the managed company later on.
• C) It yields income to the contracting firm only much later in the process.
• D) It prevents a company from setting up its own operations for a period of time.
• E) It is a high-risk method of getting into a foreign market.

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Definitions:

Seligman

A psychologist known for his work on learned helplessness and positive psychology.

Wolpe

Joseph Wolpe, a South African psychiatrist known for developing systematic desensitization, a method used in behavioral therapy to overcome phobias and anxiety.

Insight Learning

A form of problem solving where the solution suddenly comes to the individual in a sort of “aha” moment, without trial and error.

Latent Learning

Learning that occurs without reinforcement and is not immediately evident in behavior until a stimulus is presented that calls it into action.