SmartStuff Inc. grants a foreign entity the right to produce and sell the firm's microprocessors in return for a royalty fee on every product sold. SmartStuff Inc.'s approach is called Group of answer choices exporting. licensing. diversifying. outsourcing. PreviousNext

Licensing

Explanation:

Licensing can be defined as a situation in which a business organization permits another company to have access to its intellectual property at a fee. A license is usually issued to the other entity as a form of authorization.

The business organzation that authorizes another company is called the LICENSOR.

The firm whom is given the licence is called the LICENSEE.

Smartstuff inc's is licencing a foreign entity to produce and sell their microprocessors in return for a royalty fee.

Smartstuff is the LICENSOR while the foreign entity is the LICENSEE.

Licensing

Explanation: Binding agreement between two or more parties, coming together to collaborate on terms of a business whereby one of the collaborating parties is granted defined permission to produce and sell products whose copyright or trademark belongs to the other party in return for a royalty fee on each item sold. By doing these, the original product owner known as the licensor has licensed the licensee(party granted permission) or could be said to have been given a go ahead to produce and market the company's product. Producing and Selling products whose copyright belongs to another company without being licensed by the appropriate body or owner is deemed illegal and defaulters could be subjected to legal prosecution.

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