Which of the following is an example of licensing?
A)When a company allows another company to pay it a fee to train its employees.
B)When a company allows a foreign company to pay it a fee to make or distribute the first company's product or service.
C)When a company pays a competitor a fee to stop the competitor from selling its products in the company's territory.
D)When a company develops a strategic plan for another organization.
E)When a company barters goods for goods in lieu of a monetary payment.

Question

Quizplus · Accepted Answer

Licensing refers to the process wherein a company allows another company to pay it a fee to make or distribute the first company's product or service. This is a common strategy used by companies to expand their reach in foreign markets without investing significant resources in setting up their own operations. Option A is an example of training, option C is an example of a territorial agreement, option D is an example of a consulting service, and option E is an example of bartering.

Which of the Following Is an Example of Licensing