Licensing and franchising are also known as _____
A)Contract manufacturing
B)Diversification
C)Cooperative contracts
D)Investments

Question

Quizplus · Accepted Answer

Licensing and franchising are examples of cooperative contracts. In licensing, a company allows another company to use its intellectual property, like patents or trademarks, in exchange for royalties or fees. In franchising, a company allows another company to use its business model, trademarks, and operational processes in exchange for ongoing payments and adherence to franchising guidelines. Neither of these ventures involves direct investment, diversification, or contract manufacturing.

Licensing and Franchising Are Also Known as _____