An arrangement whereby a firm grants the rights to intangible property to another entity for a specified time period in exchange for royalties is a(n)_______________ agreement.
A) franchising
B) turnkey
C) licensing
D) exporting
E) joint venture

Question

Quizplus · Accepted Answer

A licensing agreement is precisely the definition given in the question stem - a firm grants the rights to intangible property (such as a patent or trademark) to another entity for a specified time period in exchange for royalties. A franchising agreement is similar, but typically involves a more extensive relationship between the two parties, including support and training from the franchisor to the franchisee. A turnkey agreement involves one firm handling an entire project, often in a foreign country, and then turning it over to the client to operate. Exporting involves actually selling physical products to customers in other countries. A joint venture involves two or more companies creating a new, jointly-owned entity to undertake a specific project or pursue a particular opportunity.

An Arrangement Whereby a Firm Grants the Rights to Intangible