Derrido Is an American Firm That Has Produced Several Successful

question 101

Multiple Choice

Derrido is an American firm that has produced several successful animated TV series in the United States. It is considering contracting with one or more international companies as a way to market its products overseas. Derrido's chief financial officer thinks that the company should enter into a contractual agreement because it will give Derrido an immediate and steady stream of revenue. Which of the following, if true, would strengthen this argument?

• A) Contractual relationships with foreign companies usually involve many rounds of negotiations.
• B) Contractual relationships are less expensive to enter into than direct investment.
• C) Compared to direct investment, contractual relationships make business less subject to unpredictable changes.
• D) Compared to other forms of entry into international markets, contractual relationships tend to be risky.
• E) Foreign companies in contractual relationships may behave unpredictably at future points in time.

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Definitions:

Trademark Infringement

The illicit application of a trademark or service mark to products and/or services without permission, in a way that may lead to confusion, deceit, or error regarding the origin of those goods and/or services.

Efficient Shoppers

Refers to consumers who maximize their shopping experience by making well-informed and cost-effective choices.

Branding

The process of creating a unique image, name, and identity for a product or service in the consumer's mind through marketing strategies.

Lanham Act

United States federal legislation that governs trademarks, service marks, and unfair competition.