Question

What are royalties?

a. fees paid to law firms and accountants
b. a percentage of a franchise’s earnings paid to the parent company
c. fees paid to celebrities for using their names
d. a percentage of profits paid to the government Please select the best answer from the choices provided A B C D

Answer 1

The answer is B: A percentage of a franchise’s earnings paid to the parent company.

Answer 2

b. A percentage of a franchise’s earnings paid to the parent company.

Step-by-step explanation:

Companies pay another company, most often the parent company or may even be the licensor, money or some degree of the income in the business world. This payment made by one to another more higher than them is known as royalty in business. The payment of royalty depend on the income incurred and the profit of the company. Royalties are paid only in cases where the 'small' company had to take help from the 'big' company. Or in other words, in exchange for any asset or help, the parent company may ask for royalties from the secondary company.