A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called a. direct licensing. b. a strategic alliance. c. franchising. d. contract manufacturing. e. a joint venture.

Question

Cristina Nichols

Business

12 November, 07:22

A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called a. direct licensing. b. a strategic alliance. c. franchising. d. contract manufacturing. e. a joint venture.

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Answers (1)

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Judith French · Answer 1

The correct answer is letter "C": franchising.

Explanation:

A Franchise is a business in which one party, the franchisee, acquires access to a franchisor's proprietary knowledge, processes, and trademarks. A franchise offers the opportunity to own a company while eliminating many of the initial obstacles. The franchisee purchases the right to sell a product or service in exchange for a fee under an existing mark name.