When one company designs, constructs, and tests a production facility for a client, the agreement is called a ________.
A) turnkey project
B) licensing agreement
C) joint venture
D) franchising agreement

Question

Quizplus · Accepted Answer

A turnkey project is a type of contract where a company designs, constructs, and tests a production facility for a client, and hands over the keys once it's completed and ready to operate. The client is typically responsible for operating and maintaining the facility themselves after the handover. Licensing agreements involve granting permission to use intellectual property or technology. Joint ventures involve two or more companies coming together to create a separate entity for a specific business purpose. Franchising agreements involve a franchisor granting a franchisee the right to use their brand, products, and services for a fee.

When One Company Designs, Constructs, and Tests a Production Facility