Long-Term Contracts Such as Licensing and Franchising Offer an Advantage

question 71

Multiple Choice

Long-term contracts such as licensing and franchising offer an advantage over short-term contracts because:

• A) They cost less.
• B) The competitive bidding process is extended.
• C) There is more incentive for transaction-specific investments.
• D) Licensing transfers ownership; short-term contracts do not.

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Definitions:

Cohabitation

The state of living together and sharing a domestic life without being married.

United States

A country located primarily in North America, consisting of 50 states and a federal district.

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, comprising various countries and cultures.

U.S. Marriages

The legally or formally recognized union of two people as partners in a personal relationship, within the cultural and legal framework of the United States.