Which of the Following Can Be Best Defined as a Form

question 106

Multiple Choice

Which of the following can be best defined as a form of licensing in which a company agrees to provide another company a name,logo,methods of operation,advertising,products,and other elements associated with a business in return for a financial commitment and the agreement to conduct business in accordance with their standard of operations?

• A)Franchising
• B)Outsourcing
• C)Joint venture
• D)Strategic alliance
• E)Direct investment

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Definitions:

Nondiversifiable Risk

Also known as systematic risk, it refers to the portion of an investment's risk that cannot be eliminated through diversification, affecting the entire market or economy.

Diversifiable Risk

A type of investment risk that can be reduced through diversification of a portfolio across different assets, sectors, or geographical locations.

Unique Risk

Risk that is specific to an individual asset or company, which can be mitigated through diversification.

Firm-Specific

Refers to risk or information that is unique to a particular company and not related to the market or industry.