Business Quiz

Type of Business method that allows an organization to use ideas and invention from other companies for a fee

• Licensing Agreement

• Joint Venture

• Franchise

• Strategic Alliance

Answer explanation

Licensing Agreement is the corrct answer.

Example : A small manufacturer might license a proprietary production technology from a larger firm to gain a competitive edge rather than expanding the time and money trying to develop its own technology.

A type of business method in which a company authorizes a group or an individual to sell its goods or services.

• Purchasing in Foreign Markets

• Establishing A Subsidiary

• Franchises

• Joint Venture

Answer explanation

Franchise is the corrct answer.

Example: Mcdonalds.The company makes money by leveraging its product, fast food, to franchises who have to lease properties, often at large markups, that are owned by McDonald's.

A ‘spinoff’ company from the parent company that may or may not have the same name

operates in a foreign

market

• Licensing Agreement

• Establishing A Subsidiary

• Purchasing in Foreign Markets

• Strategic Alliance

Answer explanation

Establishing A Subsidiary is teh correct answer

Example: Disney has over 50 subsidiary companies in which they ‘parent’

The purchasing of parts or materials

from other countries for manufacturing in the home market.

• Strategic Alliance

• Establishing A Subsidiary

• Joint Venture

• Purchasing in Foreign Markets

Answer explanation

Purchasing in Foreign Markets is the correct answer

Example :Starbucks buys its coffee from locations like Colombia and Guatemala.

Two or more companies agree to co-develop, co-produce or co-market their products.

• Strategic Alliance

• Joint Venture

• Franchise

• Licensing Agreement

Answer explanation

Strategic Alliance is the correct Answer.

Example: In June 2011, Twitter announced the formation of a strategic alliance with Yahoo! Japan. The alliance involves Tweets appearing with various fucntions offered by Yahoo! Japan

Companies from two different countries go into an agreement to produce a product/service together.

• Establishing A Subsidiary

• Franchises

• Joint Venture

• Licensing Agreement

Answer explanation

Joint Venture is the correct answer.

Example: BMW and Toyota - research on hydrogen fuel cells