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 a 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 cows image on the carton. If Paul accepts this proposal, he will need to enter into a ________ agreement with the dairy.
A) licensing
B) joint venture
C) strategic alliance
D) new product development
E) exporting

Question

Quizplus · Accepted Answer

Paul will need to enter into a licensing agreement with the dairy to give them permission to use his company's logo on their product in exchange for payment. A licensing agreement is a legal contract where a company grants permission to another company to use its intellectual property such as trademarks, patents, or copyrights.

Paul Kite Owns a Chain of Ice Cream Stores in New