John developed a food additive that replaces processed sugars. He granted the right to use this additive to a major cereal manufacturer, and John now receives a $0.50 royalty for every box of cereal sold that contains this additive. What is this an example of?
A) franchising
B) acquisition
C) licensing
D) exporting
E) turnkey project

Question

Quizplus · Accepted Answer

This is an example of licensing, where John grants the cereal manufacturer the right to use his food additive in exchange for royalties.

John Developed a Food Additive That Replaces Processed Sugars