What Is a Contract That Permits a For-Profit Company to Use

question 16

Multiple Choice

What is a contract that permits a for-profit company to use the nonprofit's logo in return for a royalty called?

• A) partnership
• B) gift-in-kind
• C) copyright agreement
• D) licensing agreement

---

Definitions:

Inventory Accounts

Accounts used to track the cost of inventory that has been purchased but not yet sold to customers.

Manufacturing Company

A business that produces finished goods from raw materials by using various forms of labor, equipment, and processes.

Merchandising Company

A business that purchases finished goods for resale, making a profit on the difference between the buying and selling prices.

Marketable Securities

Financial instruments that can be easily converted into cash at their current market value.