A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for

Question

Lelu [443]

3 years ago

9

A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for

a royalty or other compensation is known as:

Business

1 answer:

NeTakaya · Answer 1 · 2022-03-19T21:17:11+03:00

This question is incomplete because the options are missing; here is the complete question:

A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation is known as:

A. Joint venture.

B. Licensing.

C. Countertrade.

D. Strategic alliance.

E. Export-import agent.

The correct answer is B. Licensing

Explanation:

In businesses, licensing refers to a type of agreement between two companies or firms that involves one of the firms is allowed to use the brand, model, and other business elements of the other firm. This often involves the firm can produce the product of the other firm for a time. Moreover, in compensation, the firm whose product is being produced receives money or any other benefit. This type of agreement is often beneficial for the two firms involved because the firm sharing its model and product can expand its popularity, while the other firm can obtain profits. This agreement is the one described because only in this one firm permits another to use its brand and produce its product.