Management Contracts Became Popular in the 1970's Because

question 32

Multiple Choice

Management contracts became popular in the 1970's because:

• A)ownership reverted to insurance companies
• B)maintaining quality standards became difficult
• C)up front fees were larger compared to franchises
• D)little or no up front financing or equity was required

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Definitions:

Benefit From Trade

The advantage gained by countries, entities, or individuals from engaging in international trade, often including access to a wider variety of goods and services.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors using the same amount of resources.

Comparative Advantage

A principle that states that a party should specialize in producing goods for which it has the lowest opportunity cost, leading to increased economic efficiency.

Opportunity Cost

The sacrifice of potential gains from other possibilities when a specific alternative is opted for.