Question

For initial fee plus royalties, Inding Inc., a U.S.-based firm, will provide Caliste Works, a firm based in Singapore, with an exclusive right to conduct Inding's business in its country. This form of global business is an example of a _____.

Answer 1

Answer: Franchise

Explanation: Franchise is a type of business by which the owner of a commodity attains supply through affiliated sellers.

In this case, a company authorizes its practical knowledge, techniques, mental power possession, use of its company prototype, trademark and rights to sell its branded commodities and services to another company or individual, typically called a franchisee.

Also, the franchisee pays certain payments while concurring to comply with certain responsibilities usually set out in a franchise treaty.