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:
B) a "freemium" pricing model and white labeling its site
Explanation:
A freemium pricing model is based on offering a service with a few basic features for free, while also offering a premium service with enhanced features for a fee.
White labeling happens when a company's product or service is sold by another retailer using its own brand instead of the original producer's brand.
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Answer:
prices of all goods and services bought by US households
Explanation:
Answer:
Assume that you are a new analyst hired to evaluate the capital budgeting projects of the company which is considering investing in two CPEC projects, “Expansion Zone North” and “Expansion Zone East”. The initial cost of each project is Rs. 10,000. Company discount all projects based on WACC. Further, all the projects are equally risky projects and the company uses only debt and common equity for financing these projects. It can borrow unlimited amounts at an interest rate of rd 10% as long as it finances at its target capital structure, which calls for 50% debt and 50% common equity. The dividend for next period is $2.0, its expected that they will grow at the constant growth rate of 8%, and the company’s common stock sells for $20. The tax rate is 50%.