Which of the following is an advantage of management contracting?
A) It involves the least change in a company's product lines.
B) It allows a contracting firm to set up its own operations at the beginning of the contract.
C) It is the simplest way to enter a foreign market.
D) It yields income from the beginning of the contract.
E) It gives a contracting firm an option to buy shares in the managed company immediately.
Answer: D) It yields income from the beginning of the contract.