Disney sells the rights for an investment company to run a Disneyland theme park in Tokyo.The investment company gains most of the profits from the enterprise while paying Disney a percentage in royalties.This is an example of:
A) a joint venture
B) exporting
C) direct investment
D) licensing
E) capital-intensive manufacturing

Question

Quizplus · Accepted Answer

This kind of arrangement is licensing because Disney is only selling the right to run the park.If the investment company does a poor job,Disney can seek out another to replace it.

Disney Sells the Rights for an Investment Company to Run