Question

The Dance Company, a renowned dance studio in Manhattan, enters into an agreement with La Danza in Spain to operate several dance studios. La Danza will provide capital for running the dance studios and The Dance Company will contribute its world-renowned expertise about the art of dance. In this case, The Dance Company enters a foreign market through ________.

A) contract manufacturing
B) management contracting
C) licensing
D) joint ownership
E) direct investment

Answer 1

The correct answer is B) management contracting

Step-by-step explanation:

The Management Contract is defined as that contract for the location of work or service through which a company undertakes to administer and manage all or part of the activities of another in exchange for compensation.

The most widespread denomination is a management contract, a name originally used in Italy and France. It is also known as a management contract in countries such as Peru and Spain when it refers to public procurement, sometimes confusing it with the concession contract that both countries contemplate in their public administration laws, without suppressing the possibility that, in At some point, these laws regulate the management contract whereby they delegate the administration of an entire state entity to a private company, which includes the corresponding audit, in the manner of the European monitoring council.