For the Provider, Management Contracts Offer the Advantage of ________

question 34

Multiple Choice

For the provider, management contracts offer the advantage of ________.

• A)receiving income without making a capital outlay
• B)increasing their merchandise exports
• C)reducing their global taxes
• D)better access to raw materials

---

Definitions:

Incremental Cash Flows

The extra cash flow an organization gains by initiating a new project.

Total Cash Flows

The aggregate sum of cash entering and leaving a corporation, which plays a significant role in determining its financial fluidity.

Income Taxes

Taxes levied on both earned income (wages, salaries) and unearned income (dividends, interest), imposed by government authorities.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and should not affect future investment or spending decisions.