Memories Forever Scrapbooking Company is interested in global expansion but does not want to make a large financial commitment.Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Memories Forever name.This is a(n) ____ agreement.
A) exporting
B) strategic alliance
C) licensing
D) countertrade
E) bill of lading

Question

Quizplus · Accepted Answer

This is a licensing agreement. In a licensing agreement, a company grants another company the right to use its intellectual property (in this case, the Memories Forever name) in exchange for royalties or other compensation. The Japanese company will manufacture and distribute products under the Memories Forever name, but Memories Forever retains ownership and control of the brand. This allows for global expansion without a large financial commitment.

Memories Forever Scrapbooking Company Is Interested in Global Expansion but Does