Answer:
It is Franchising (B)
Explanation:
Option (A) False.
Licensing is contractual transaction where the company (licensor) offers some proprietary assets to foreign company (licensee) in exchange for royalty fees .
Licensing is considered a low involvement and low-control entry strategy, since it does not necessarily entail equity participation, and because control over operations and strategy is granted to the licensee in exchange for a lump-sum payment, and a commitment to abide by any terms set out in the licensing contract.
Option (B) True.
A franchise agreement is a contractual arrangement between two independent firms, whereby the franchisee pays the franchisor for the right to sell the franchisor's product and/or the right to use the franchisor's trademark at a given place and for a certain period of time.
Franchisors typically offer managerial assistance and exercises substantial control over the franchisee.
Option (C) False
Exporting- here the company becomes directly involved in marketing its products in foreign markets. Although the associated cost and risks are greater, so are the profits too ,all things being equal.
Option (D) False
This is when two or more independent companies create a separate entity but still still maintain their former entity . As a penetration strategy, it does not only reduced risks but also decreases individual involvement.
It can also be used to eliminate risk of entry barriers for a new entrant in an existing market.
Answer:
Total future value= $645.8
Explanation:
Giving the following information:
Year 0 1 2 3 4
CFs: $0 $75 $225 $0 $300
Interest rate= 6.5%
<u>To calculate the future value, we need to use the following formula on each cash flow:</u>
FV= PV*(1+i)^n
Cf1= 75*1.065^3= 90.60
Cf2= 225*1.065^2= 255.20
Cf3= 0
Cf4= 300
Total future value= $645.8
I would think shoes because it’s the only one that can be produced.
Answer:
D. Reimbursement
Explanation:
A principal may be defined as a company's agent dealing with a contractor. The principal has the duty to reimburse an agent for the amount of money used up while carrying out his/her duty. Reimbursement may be from expenses like cost of travelling, cost of meals, cost of lodging and so on. In other words, if an agent makes authorized spending while doing a job for the principal, the principal has the duty to reimburse the agent for the money spent.
