Granting a Foreign Company the Right to Manufacture Your Product

question 109

Multiple Choice

Granting a foreign company the right to manufacture your product or to use your firm's trademark in return for a fee is called:

• A)A joint venture.
• B)A foreign subsidiary.
• C)Licensing.
• D)Outsourcing.

---

Definitions:

Quality Cost Report

A financial report that details the costs associated with preventing, detecting, and dealing with defects in products.

Manufacturing Cycle Efficiency

A metric that measures the efficiency of a manufacturing process by dividing the value-added production time by the total cycle time.

Production Data

Information related to the quantity, quality, cost, and efficiency of the production process in a manufacturing company.

Prevention Cost

Expenses incurred to avoid defects in products or services, including costs related to quality training and product design improvements.