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Business Studies

Licensing and Franchising

Which of the ...

Question

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.

A

Only statement 2 is incorrect

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B

Only statement 1 is incorrect

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C

Both 1 and 2 are correct

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D

Statement 2 is correct but staement 1 is incorrect

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Solution

The correct option is A
Only statement 2 is incorrect

Only statement 2 is incorrect. Franchising is a special 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.

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

(c) Joint ventures

(d) Licensing

Q. write a word or phrase or a term which can substitute each one of the following statements.
1. A Temporary partnership in business.
2. A company which is incorporated in one country and has business units in several countries.
3. A company formed by passing a special act in the parliament or legislature.
4. Partners in a Joint venture.

Q. However, it is possible that the non -resident entity may have a business connection with the resident Indian entity. In such a case, the resident Indian entity could be treated as Permanent Establishment of the non-resident entity. ___ During the last decade or so, India has seen a steady growth of outsourcing of business processes by non-residents or foreign companies to IT-enabled entities in India. Such entities are either branches or associated enterprises of the foreign enterprise or an independent India enterprise. The nonresident entity or foreign company will be liable to tax in India only if the IT-enabled BPO unit in India constitutes its Permanent Establishment.

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Licensing and Franchising

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