Shareholders Meeting (Scenario) A Senior Manager at Hudson Motors Inc. Presented the Top

question 53

Multiple Choice

Shareholders Meeting (Scenario)
A senior manager at Hudson Motors Inc. presented the top management of his firm with a strategy aimed at improving sales and profits. Based in Kentucky, Hudson Motors has always used American-made parts for its automobiles. However, sales and profits have slumped miserably over the past three years. In his plan, the senior manager proposes to delegate certain noncore operations to external vendors besides setting up manufacturing units in Asia, where the cost of labor is significantly low.
-If Hudson Motors grants the right to Mercury Motors Inc., an Asian automobile firm, the right to use its business system in exchange for compensation, Hudson Motors would play the role of a ________.

• A) franchisor
• B) licensor
• C) agent
• D) turnkey contractor

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Definitions:

Federal Income Tax

A tax levied by the United States federal government on the annual income of individuals, corporations, trusts, and other legal entities.

Economic Statement

A declaration or report that provides information regarding the financial performance or economic conditions of an entity, sector, or economy.

Minimum Wage

The lowest legal hourly pay for workers, as established by law.

Way Of Thinking

A perspective or method of approaching problems and making decisions based on certain principles, values, or assumptions.