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:

Ownership Of Stocks

The holding of shares in a company, which represent a claim on the company's assets and earnings, providing an opportunity for investment returns.

Specific Sector

refers to a distinct part of the economy, focused on a particular type of activity or service, such as technology or healthcare.

Diverse Set

A collection comprising a wide variety of elements, often referring to different types, characteristics, or origins.

Random Walk Theory

The hypothesis that stock market prices evolve according to a random walk and, thus, the future movement of stock prices cannot be predicted.