Question

Pelican Inc., a multinational oil corporation headquartered in Denmark, conducts its operations in various nations by establishing an outlet in different locations. Each outlet creates a separate corporation to own and perform the functions of Pelican Inc. Given this scenario, we can conclude that Pelican Inc. operates through ________. Select one: A. strategic alliance B. franchising C. merger D. joint venture

Answer 1

Answer:

The correct answer is letter "B": franchising.

Explanation:

A Franchise is a business where one person, the franchisee, gains access to the proprietary knowledge, processes, and trademarks of a franchisor. In return for a royalty, the franchisee acquires the right to market a product or service under an existing brand name.

The customer is already familiar with the brand, so there is no need to invest additional resources to promote the product.