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​Harley-Davidson allows Portland Clothing to stitch the Harley logo on the jackets it makes and sells to retailers. This is a​ _________ arrangement.

a) Franchising
b) Licensing
c) Joint venture
d) Strategic alliance
e) Partnership

User Idolize
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1 Answer

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Final answer:

Harley-Davidson's agreement with Portland Clothing is a licensing arrangement, where Portland Clothing is permitted to use the Harley logo on jackets in exchange for a licensing fee or royalties.

Step-by-step explanation:

When Harley-Davidson allows Portland Clothing to use its logo on the jackets that the latter company makes and sells, this forms a licensing arrangement. Licensing is a business arrangement in which one company gives another company permission to manufacture its product for a specified payment. This arrangement typically involves a licensing fee and/or royalties based on sales.

In this case, Portland Clothing is granted the rights to use the Harley-Davidson logo, which is a recognized trademark. Portland Clothing is able to produce and sell Harley-branded apparel, and in exchange, Harley-Davidson receives a financial benefit without having to manufacture the apparel themselves. This allows Harley-Davidson to extend its brand reach and generate revenue through licensing fees.

User Kanwar Singh
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