Anthony is expanding his business into foreign markets. Anthony is providing a licence to a foreigner to use his business model,name,and know-how. Anthony will help the foreigner get the business started and provide ongoing support. To whom is Anthony providing a licence as he grows his business globally?
A)a sales agent
B)a franchisee
C)a distributor
D)an importer

Question

Anthony is expanding his business into foreign markets. Anthony is providing a licence to a foreigner to use his business model,name,and know-how. Anthony will help the foreigner get the business started and provide ongoing support. To whom is Anthony providing a licence as he grows his business globally?
A)a sales agent  
B)a franchisee  
C)a distributor  
D)an importer

Quizplus · Accepted Answer

Anthony is providing a licence to someone who will use his business model, name, and know-how, and he will provide ongoing support. This describes a franchise agreement, in which an individual or company (the franchisee) pays for the right to use the franchisor's name, brand, and operating system, and receives ongoing support in exchange. A sales agent typically sells goods or services on behalf of a company, but doesn't have the right to use the company's name or operating system. A distributor buys goods from a company and sells them to others, but again, doesn't generally have the right to use the company's name or operating system. An importer brings goods into a country from overseas, but this doesn't apply to Anthony's situation.

Anthony Is Expanding His Business into Foreign Markets