A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is most likely selling the rights to use its:
A) production facilities.
B) brand name.
C) channels of distribution.
D) sales force.
E) Any of these are equally likely.

Question

Quizplus · Accepted Answer

By entering into a licensing agreement, the producer is most likely selling the rights to use its brand name in a foreign market. This allows the foreign company to use the producer's reputation and image to better reach foreign customers.

A Producer That Enters into a Licensing Agreement with a Foreign