is a form of licensing where a parent company grants another independent entity the right to do business prescribed by the parent company

Licensing

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Franchising

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Joint venture

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Partnership

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Solution

The correct option is B Franchising
Franchising is a unique form of licensing in which a parent company grants another independent entity the right to do business in a manner prescribed by the parent company’. The parent company which gives the permission is called franchisor, and the independent company which acquires the rights is called franchisee.

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Similar questions

Which of the following facts statements is/are incorrect?

1. The top import sources for India are China, USA, UAE, and Saudi Arabia.

2. Licensing is a special form of franchising in which a parent company grants another independent entity the right to do business in a manner prescribed by the parent company.

Q. Select the proper option from the options given below and rewrite the sentences.

Under ________ an independent organization (franchisee) operates the business under the name of another company (franchisor).

(a) Licensing
(b) Franchising
(c) Joint Venture

When two or more firms come together to create a new business entity that is legally separate and distinct from its parents is known as

(a) Contract manufacturing

(b) Franchising

(d) Licensing

Q. a) From legal point of view, a joint stock company is recognised as separate legal entity from the shareholders.
b) Partnership firms and sole trading businesses do not have legal entity, but they have business entity for accounting purposes.
Of these

Q. The transfer by a company of one or more of its business divisions to another newly set up company is called _____________.

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