Which of the Following Is a Similarity Between Licensing and Franchising

question 97

Multiple Choice

Which of the following is a similarity between licensing and franchising?

• A) Under both, the produced goods are subject to tariff and nontariff barriers.
• B) Both require the parent company to invest in production equipment and facilities to produce the
• Product.
• C) Both are types of cooperative contracts.
• D) Under both, the parent company retains complete control over the quality of the product or service sold by another company.

---

Definitions:

Chorion

Outermost extraembryonic membrane of amniotes; major component of the placenta in placental mammals.

Epidermis

Outermost tissue layer. In animals, the epithelial layer of skin. In plants, the dermal tissue.

Mesoderm

Middle tissue layer of a three-layered animal embryo.

Ectoderm

Outermost tissue layer of an animal embryo.