Question

The Licensee pays to the Licensor, a sum of money called ________or using his business know-how and trade mark.

• A. trade balance
• B. royalty
• C. sales dues
• D. account balance

Answer 1

The correct option is B royalty

• Licensing is a contractual arrangement in which one firm grants access to its patents, trade secrets or technology to another firm in a foreign country for a fee called royalty.
  
• The firm that grants such permission to the other firm is known as licensor and the other firm in the foreign country that acquires such rights to use technology or patents is called the licensee.