Scenario: Sports Stuff,Inc.
Herb Graham is vice president of Sports Stuff,a business that develops,manufactures,and markets sports memorabilia.The company is looking to expand its operations into the European market.Herb believes that if the company expands its product line to include products reflecting sports that are popular in Europe,the company will achieve success there.
-Herb knows that much of the success his company enjoys is due to the patents and copyrights that protect the company's products.If Sports Stuff chooses an entry mode in which it grants another firm the right to use its intangible property for a specified period of time,it would be engaging in which of the following?
A)Strategic alliance
B)Franchising
C)Licensing
D)Management contract

Question

Quizplus · Accepted Answer

If Sports Stuff chooses an entry mode in which it grants another firm the right to use its intangible property for a specified period of time, it would be engaging in licensing. Licensing is a common form of entry mode where a firm grants the right to use its intangible property (such as patents, trademarks, or copyrights) to another firm in exchange for royalties or other compensation. It allows the licensor (in this case, Sports Stuff) to expand into new markets without having to invest in physical assets or operations. Strategic alliances involve the formation of partnerships between two or more firms, franchising involves the granting of a license to use a firm's business model and brand name, and management contracts involve the hiring of a third-party manager to run a firm's operations.

Scenario: Sports Stuff,Inc. Herb Graham Is Vice President of Sports Stuff,a Business That