[Miracle Face] Yoshe developed a great new type of face cream guaranteed to provide total sun protection, remove wrinkles, and result in anyone looking at least ten years younger. Her product, Miracle Face, became extremely popular in the U.S., where she has several shops, and also in other countries to which it was shipped. Yoshe has a number of individuals in other countries seeking to team with her in selling Miracle Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and any associated trademarks, and allow him to sell Miracle Face in Mexico. Yoshe has an offer, however, from another Mexican citizen, Nora. Nora proposes that she and Yoshe associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Yoshe has also thought about opening her own business in Mexico in conformity with Mexican laws. She would then hire employees in Mexico to sell the product. Another matter Yoshe has considered is simply arranging for her products to be shipped to Mexico for sale, and she is interested in the effect of any trade agreements between the U.S. and Mexico.
-If Yoshe decides to open her own business in Mexico in conformity with Mexican laws and hires employees in Mexico to sell the product, she would have opened a[n] ________.
A) Franchise
B) Distributorship
C) Joint venture
D) Licensing subsidiary
E) Affiliate

Question

Quizplus · Accepted Answer

Opening her own business in Mexico, in compliance with Mexican laws, and hiring local employees to sell Miracle Face would result in the creation of an affiliate. An affiliate is a company that is closely connected to another company, typically by being in the position of a member or partner, but operates independently.

[Miracle Face] Yoshe Developed a Great New Type of Face