Selling the Rights to Use a Company's Brand Name in Return

question 111

Multiple Choice

Selling the rights to use a company's brand name in return for a lump-sum payment and a share of the buyer's profits is referred to as:

• A) offshoring.
• B) a joint venture.
• C) exporting.
• D) franchising.
• E) royalty facilitation.

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Definitions:

Break-even Sales

The amount of revenue required to cover all fixed and variable costs, resulting in neither profit nor loss.

Sales

The total revenue generated from goods or services sold by a company within a specific period.

Break-even Point

The point at which total costs and total revenues are equal, meaning no net loss or gain is incurred.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, insurance, and property taxes.