A Start-Up Company Based in Canada and Led by an Academic

question 28

Multiple Choice

A start-up company based in Canada and led by an academic microbiologist has patented genetically-modified,drought-resistant maize particularly suitable to arid regions of Africa.The firm has been unable to attract significant venture capital investment.How should the firm exploit commercial opportunities for its product in Africa?

• A)It should form a joint venture with a multinational agricultural seed company
• B)It should establish seed production in Canada and set up sales offices in African countries
• C)It should establish seed production in Canada and appoint sales agents in different African countries
• D)It should license its patent to a multinational agricultural seed company and continue research on other projects for the genetic modification of agricultural crops

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Definitions:

Sales Employees

Individuals engaged in promoting and selling products or services for a company.

Straight Commission Plan

A compensation plan based on a percentage of sales.

Percentage of Sales

A financial ratio that compares a company's expenses or profits to its total sales, often used to analyze efficiency or profitability.

Perquisites

Special nonmonetary benefits given to executives; often referred to as perks