Which of the Following Is a Drawback of Management Contracting

question 79

Multiple Choice

Which of the following is a drawback of management contracting?

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

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