Paul Kite owns a chain of ice cream stores in New England. To draw attention to his stores, he adopted a very colorful and distinctive logo several years ago, which depicts a funny-looking cow churning ice cream. Recently, a dairy company asked Paul if it could use a characterization of his funny-looking cow on a line of yogurt it is coming out with, and offered to pay Paul's company 3 cents for every carton of yogurt it sells that has the cow's image on the carton. If Paul accepts this proposal, he will need to enter into a(n) ________ agreement with the dairy.
A) licensing
B) joint venture
C) strategic alliance
D) new product development
E) exporting

Question

Quizplus · Accepted Answer

In this scenario, a licensing agreement would be the most appropriate option as it would allow the dairy company to use Paul's logo on their yogurt packaging in exchange for a royalty payment. A joint venture or strategic alliance would entail a more collaborative partnership between the two companies, whereas new product development and exporting do not apply to this specific situation.

Paul Kite Owns a Chain of Ice Cream Stores in New