SmartStuff Inc

question 27

Multiple Choice

SmartStuff Inc. grants a foreign entity the right to produce and sell the firm's microprocessors in return for a royalty fee on every product sold. SmartStuff Inc.'s approach is called

• A) outsourcing.
• B) licensing.
• C) franchising.
• D) exporting.
• E) diversifying.

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Definitions:

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific amount of money to the bearer.

Notice

A formal declaration or announcement, often legally required, to inform or warn of a particular action or condition.

Privity of Contract

The relationship that exists between the parties involved in a contract, giving them the ability to sue each other but not allowing a third party to do so.

Manufacturer

A person or company that makes goods for sale, especially on a large scale.