Licensing Obligates a Firm to Provide _____, While Franchising Obligates

question 38

Multiple Choice

Licensing obligates a firm to provide _____, while franchising obligates a firm to provide _____.

• A) a specialized sales or service strategy; its technology
• B) its technology; a specialized sales or service strategy
• C) its technology; its technology
• D) a specialized sales or service strategy; a specialized sales or service strategy
• E) its technology; an initial investment

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Definitions:

Direct Expense

Costs that can be directly traced to a product, service, or specific cost center, such as raw materials and labor.

Sales Commission Expense

A cost incurred by a company to compensate its sales staff, based on a percentage of the sales they achieve.

Department Store

A large retail store offering a wide variety of goods organized into departments.

Responsibility Centers

Entities within an organization responsible for controlling revenue and expenses, influencing the operational and financial results.