An Agreement in Which One Company Allows Another to Use

question 5

Multiple Choice

An agreement in which one company allows another to use its brand on other products for a fee is called

• A) co-branding.
• B) brand extension.
• C) brand licensing.
• D) trademark licensing.
• E) cooperative branding.

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Definitions:

Expensed

The act of charging costs to expense accounts, recognizing them in the income statement in the period they were incurred.

Operation

In a business context, operation refers to the day-to-day activities necessary for running a company, which can include production, distribution, and the provision of services.

CCA Deductions

Refers to Capital Cost Allowance deductions in taxation, allowing businesses to claim depreciation on tangible capital assets.

CCA Tax Shield

Refers to the decrease in taxable income for businesses in Canada due to Capital Cost Allowance, which allows for the depreciation of tangible property to be deducted from taxable income.