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Shareholders Meeting (Scenario) A Senior Manager at Hudson Motors Inc. Presented the Top

Question 93

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Shareholders Meeting (Scenario)
A senior manager at Hudson Motors Inc. presented the top management of his firm with a strategy aimed at improving sales and profits. Based in Kentucky, Hudson Motors has always used American-made parts for its automobiles. However, sales and profits have slumped miserably over the past three years. In his plan, the senior manager proposes to delegate certain noncore operations to external vendors besides setting up manufacturing units in Asia, where the cost of labor is significantly low.
-If Hudson Motors grants the right to Mercury Motors Inc., an Asian automobile firm, the right to use its business system in exchange for compensation, Hudson Motors would play the role of a ________.


A) franchisor
B) licensor
C) agent
D) turnkey contractor

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