The management of Vimonland Theme Park sells the proprietary rights of all the park rides to an investment company to operate one of its franchise in a foreign country.The investment company gains most of the profits from the newly established theme park while paying the management of Vimonland Theme Park a percentage of its revenue as royalties.In this case,Vimonland Theme Park is a _____.
A)licensor
B)buyer for export
C)contract manufacturer
D)licensee

Question

The management of Vimonland Theme Park sells the proprietary rights of all the park rides to an investment company to operate one of its franchise in a foreign country.The investment company gains most of the profits from the newly established theme park while paying the management of Vimonland Theme Park a percentage of its revenue as royalties.In this case,Vimonland Theme Park is a _____.
A)​licensor
B)buyer for export
C)contract manufacturer
D)​licensee

Quizplus · Accepted Answer

Vimonland Theme Park is selling the proprietary rights to another company to operate one of its franchises, and is therefore acting as the licensor. The investment company is the licensee in this case.

The Management of Vimonland Theme Park Sells the Proprietary Rights