Question

________ is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation.

A) Licensing
B) Equity stake
C) Foreign direct investment​ (FDI)
D) Joint venture
E) Contract manufacturing

Answer 1

Licensing is a contractual arrangement where one company makes a legally protected asset available to another company in exchange for compensation.

Step-by-step explanation:

Licensing is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. In this arrangement, the licensing company grants the licensee the rights to use its intellectual property, such as trademarks or patents, in a specific territory or for a specific period of time. The licensee pays royalties or licensing fees to the licensing company as compensation for using its assets.