Which arrangement involves a company setting a contract with a company abroad, training local personnel, and then turning the key over to local management for a fee?

Which arrangement involves a company setting a contract with a company abroad, training local personnel, and then turning the key over to local management for a fee?

• A. Management Contract
• B. Offshoring
• C. Turnkey Operation
• D. Outsourcing

Answer: (C)

Turnkey operation is about delivering a fully functioning setup abroad: a company contracts with a partner to design, build, and implement the operation, trains the local personnel, and then hands the running of the business over to local management for a fee. The key idea is delivering something "ready to operate" so the new local team can take over immediately with minimal ongoing involvement from the original company. This fits best because the scenario describes not just moving work or contracting services, but creating a complete, ready-to-run operation and transferring control to local managers. In contrast, offshoring focuses on relocating processes to another country, outsourcing involves contracting out tasks to a third party, and a management contract covers managing the business without transferring full operation or ownership.

Turnkey operation is about delivering a fully functioning setup abroad: a company contracts with a partner to design, build, and implement the operation, trains the local personnel, and then hands the running of the business over to local management for a fee. The key idea is delivering something "ready to operate" so the new local team can take over immediately with minimal ongoing involvement from the original company. This fits best because the scenario describes not just moving work or contracting services, but creating a complete, ready-to-run operation and transferring control to local managers. In contrast, offshoring focuses on relocating processes to another country, outsourcing involves contracting out tasks to a third party, and a management contract covers managing the business without transferring full operation or ownership.