A foreign- owned firm is granted the use of a domestic company's manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty under an arrangement known as:
A) joint venturing.
B) management contracting.
C) licensing.
D) contract manufacturing.
E) joint ownership.

Question

Quizplus · Accepted Answer

The arrangement described in the question is licensing. Licensing involves granting permission to a foreign company to use a domestic company's intellectual property or other valuable items for a fee or royalty, without giving the foreign company ownership of the assets. Joint venturing and joint ownership involve shared ownership of a business or project, while management contracting and contract manufacturing involve outsourcing management or production.

A Foreign- Owned Firm Is Granted the Use of a Domestic