Which of the Following Observations Is True of a Management

question 58

Multiple Choice

Which of the following observations is true of a management contract?

• A) For the supplier, the risk of participating in an international venture is substantially increased.
• B) The supplier will be unable to exercise any amount of operational control.
• C) For the client, expertise that is built up is provided.
• D) For the client, organizational skills that are not available locally can be provided.

---

Definitions:

Strike Price

The specified price at which the buyer of an option can buy (call) or sell (put) the underlying security or commodity.

Put Options

Options contracts that give holders the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Exercise Price

The predetermined price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.

Call Options

Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a set time frame.