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________ is a form of business ownership in which a firm that already has a successful product or service licenses its trademark and method of doing business to other businesses in exchange for an initial franchise fee and an ongoing royalty.

a) Sub-Contracting
b) Licensing
c) Franchising
d) Contracting
e) Joint Venturing

1 Answer

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Final answer:

Franchising is a form of business ownership in which a firm licenses its trademark and method of doing business to other businesses. Option c.

Step-by-step explanation:

The correct answer is c) Franchising.

Franchising is a form of business ownership in which a firm that already has a successful product or service licenses its trademark and method of doing business to other businesses in exchange for an initial franchise fee and an ongoing royalty. A franchise is a way to start a business based on a model designed by the franchisor, who provides support and training.

For example, McDonald's is a franchise that offers similar products in many locations. The franchisees pay a franchise fee and royalty fees to McDonald's in return for using its trademark and operating under its established model.

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