Scenario: Sports Stuff, Inc.
Herb Graham is vice president of Sports Stuff, a business that develops, manufactures, and markets sports memorabilia. The company is looking to expand its operations into the European market. Herb believes that if the company expands its product line to include products reflecting sports that are popular in Europe, the company will achieve success there.
-Herb has been exploring another type of entry mode that requires ongoing assistance on the part of one firm, often in the form of start-up capital, management training, or location advice. Herb is probably referring to a ________.
A) strategic alliance
B) franchise
C) licensing agreement
D) management contract

Question

Quizplus · Accepted Answer

Herb is likely referring to a franchise, which involves providing ongoing assistance such as start-up capital, management training, or location advice to the franchisee.