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How to Manage Concession Agreement

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A concession agreement is a negotiated contract allowing a company to operate under specific conditions. It primarily exists in two contexts: first, as a contract between a foreign company and a government, permitting the company to do business within that country. In this case, the government may offer incentives like tax reductions or relaxed regulations to attract the company. Second, a concession agreement grants a concessionaire exclusive rights to operate in a defined area or venue, often involving carefully negotiated terms. If a government is less receptive, the company might need to make compromises to secure the agreement.

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What is meant by concession agreement?

Key Takeaways. A concession agreement is a contract that gives a company the right to operate a specific business within a governments jurisdiction or on another firms property, subject to particular terms.

What does concession mean in money?

In finance, a concession refers to the compensation an underwriter receives for managing the sale of stocks or bonds for a company.

What are the advantages of concession agreements?

Advantages of a concession agreement It spreads the risk involved for both parties and no single partys share is at risk. It involves a high level of private investment which will result in better enforcement and implementation of the projects involved.

What does concession mean in banking?

In finance, a concession refers to the compensation an underwriter receives for managing the sale of stocks or bonds for a company. The underwriter is generally an investment bank that assumes the risk of marketing and distributing the shares of a new issue for a publicly traded company.

What is an example of concession business?

When you think of a concession business you might think of the corn-dog booth at the state fair. Thats one kind, but its not the only one. For example, state parks contract with businesses to offer food. Fine jewelry is offered through concession stands in department stores.

What is an example of a concession?

It is commonly used to indicate something that has been conceded (as when the politician who loses a race gives a concession speech, or when someone makes a concession in an argument).

What does concession mean in business?

What is a concession? It is a kind of partnership between the public sector and a (usually) private company that has shown its added value in a specific area, for example developing infrastructure.

What is concession in terms of business?

A concession agreement is a contract that gives a company the right to operate a specific business within a governments jurisdiction or on another firms property, subject to particular terms.

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Manage Concession Agreement