Question

Selling the rights to use your company's brand name in return for a lump-sum payment and a share of the profits generated is referred to as ____.
(A) licensing.
(B) entering a joint venture.
(C) exporting.
(D) franchising.
(E) royalty facilitation.

Answer 1

Answer:

(D) franchising.

Explanation:

The franchising is an innovative idea to increase the sales of the company brand through which the company can able to capture maximum market size across the work. This strategy works with the motive to expand the business.

In this, there are two parties i.e franchiser and franchisee. The franchiser sells its logo, name, rights to the outlets that we called franchisee. For this, the franchiser gets the lump sum payment and profit share, etc.