Greyer Co.manufactures surgical instruments.Systems Medico establishes a contractual arrangement with Greyer Co.,according to which the firm can use Greyer manufacturing methods and management structure to produce and sell surgical instruments.Systems Medico must pay a yearly fee to Greyer Co.for the use of its trademark and manufacturing processes.In this scenario,Systems Medico is the _____.
A) licensor
B) contract manufacturer
C) licensee
D) intrapreneur

Question

Quizplus · Accepted Answer

Systems Medico is the licensee as they have entered into a contractual arrangement with Greyer Co. to use their manufacturing methods and management structure in exchange for a fee. The licensor is Greyer Co. who is allowing Systems Medico to use their trademark and manufacturing processes. Contract manufacturer and intrapreneur are not applicable to this scenario as Systems Medico is not manufacturing on behalf of Greyer Co. and is a separate entity from Greyer Co. respectively.

Greyer CoManufactures Surgical Instruments