Licensing obligates a firm to provide _____, while franchising obligates a firm to provide _____.
A) a specialized sales or service strategy; its technology
B) its technology; a specialized sales or service strategy
C) its technology; its technology
D) a specialized sales or service strategy; a specialized sales or service strategy
E) its technology; an initial investment

Question

Quizplus · Accepted Answer

Licensing involves granting rights to use a company's technology or intellectual property, while franchising involves granting the right to use a company's business model or brand name, along with providing support and guidance on how to operate the franchise. Therefore, licensing obligates a firm to provide its technology, while franchising obligates a firm to provide a specialized sales or service strategy.

Licensing Obligates a Firm to Provide _____, While Franchising Obligates