Which of the Following Is a Drawback of Management Contracting

Multiple Choice

Which of the following is a drawback of management contracting?

A) Management contracting prevents the company from setting up its own operations for a period of time.
B) Management contracting is a high-risk method of getting into a foreign market.
C) Management contracting yields income much later on in the process.
D) Management contracting does not provide the option of buying shares in the managed company.
E) The domestic firm lacks the management know-how.