Allowing a Foreign Organization to Take Charge of Manufacturing and Distributing

question 42

Multiple Choice

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is referred to as

• A)licensing.
• B)franchising.
• C)strategic alliance.
• D)exporting.
• E)importing.

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Definitions:

Annual Salary

The total amount of money that an individual earns in one year from their job before taxes and deductions.

Gross Earnings

The total amount of income earned by an individual or generated by a business before any deductions like taxes or expenses are applied.

Production In Excess

The situation when the quantity of goods produced exceeds the demand or expected sales volume.

Processing Line

A sequence of mechanical or chemical operations performed in order to prepare a product for market or further processing.