Jennifer and James decide to allow a company in Hong Kong to use the rights to their software,brand name,and product specifications in return for a lump-sum payment.This agreement is known as a(n)________.
A)strategic alliance / joint venture
B)export alliance
C)franchise
D)foreign subsidiary

Question

Quizplus · Accepted Answer

The agreement described is a franchise agreement, where the Hong Kong company is paying for the right to use the software, brand name, and product specifications of Jennifer and James' company. A strategic alliance/joint venture typically involves two or more companies working together to achieve a specific goal. An export alliance is a type of strategic alliance focused on exporting goods to a foreign market. A foreign subsidiary involves a company setting up a separate entity in a foreign country. None of these options fit the scenario described in the question.

Jennifer and James Decide to Allow a Company in Hong