A Form of Licensing in Which a Foreign Firm Buys

question 125

Multiple Choice

A form of licensing in which a foreign firm buys the rights to use another's name and operating methods in its home country is called ___.

• A) a licensing agreement
• B) franchising
• C) a joint venture
• D) outsourcing
• E) a strategic alliance

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Definitions:

Gross Domestic Product

The total monetary value of all finished goods and services produced within a country's borders in a specific time period, an important indicator of economic health.

Inventories

The stocks of goods, raw materials, and other assets that a company holds for the purpose of future sale or production.

Great Depression

A global economic crisis that occurred in the 1930s, marked by extreme financial hardship.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant political and geographic changes.