Diners Corporation,a U

question 9

Multiple Choice

Diners Corporation,a U.S.firm,signs a contract with Essen,A,G.,a German firm,to give Essen the right to use Diners' trademark in restau?rants in Germany.This is

• A)a distribution agreement.
• B)a joint venture.
• C)direct exporting.
• D)licensing.

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Definitions:

Fixed Assets

Long-term tangible assets that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.

Sales Increase

A situation where a company experiences a rise in the volume or value of its product sales over a particular period.

Operating Capacity

The maximum output a company can produce using its current resources and technology.

Pro Forma

A financial statement prepared on the basis of some assumed events and transactions that have not yet occurred.