3 tries left\nhotel companies are opting for management contracts over ownership because ________.\nselling…

3 tries left\nhotel companies are opting for management contracts over ownership because ________.\nselling an existing property and entering into a management contract guarantees at least a 50 percent return on investment for all properties\nless capital is tied up with management compared to owning properties\nmanagement contracts can be broken more easily than selling a property if the economy goes bad\nrapid expansion overseas requires the agility provided by a management company

3 tries left\nhotel companies are opting for management contracts over ownership because ________.\nselling an existing property and entering into a management contract guarantees at least a 50 percent return on investment for all properties\nless capital is tied up with management compared to owning properties\nmanagement contracts can be broken more easily than selling a property if the economy goes bad\nrapid expansion overseas requires the agility provided by a management company

Answer

Brief Explanations:

Hotel companies often prefer management contracts as they involve less capital - tying compared to property ownership. Owning properties requires a large amount of capital for purchase, maintenance, etc. Management contracts allow them to operate hotels with less upfront capital investment. The other options are either inaccurate (a 50% return is not guaranteed) or not the main reason (contract - breaking ease and overseas expansion agility are secondary compared to capital requirements).

Answer:

B. less capital is tied up with management compared to owning properties