Hilton helps others run their hotels by exporting know-how services rather than products.This type of joint venture is known as ________.
A) contract manufacturing
B) licensing
C) management contracting
D) joint ownership
E) direct investment

Question

Quizplus · Accepted Answer

Management contracting involves exporting services such as operational know-how, training, and management expertise rather than physical products. This is exactly what Hilton is doing by helping others run their hotels, thus the best choice is C. Contract manufacturing involves exporting the manufacturing of products to another company. Licensing involves granting the right to use a product or technology to another company. Joint ownership involves jointly owning and operating a business with another company. Direct investment involves investing directly in and owning a foreign company or facility.

Hilton Helps Others Run Their Hotels by Exporting Know-How Services