A producer that enters into a licensing agreement with a foreign company to better reach foreign customers is MOST likely selling the rights to use its:
A) production facilities.
B) brand name.
C) channels of distribution.
D) sales force.
E) Any of the above are equally likely.

Question

Quizplus · Accepted Answer

By entering into a licensing agreement with a foreign company, the producer is most likely selling the rights to use its brand name in order to reach foreign customers. This allows the foreign company to use the established reputation of the producer's brand to promote and sell products in their market.

A Producer That Enters into a Licensing Agreement with a Foreign