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Which of the following is a form of franchising?

a.
Direct investing
b.
Barter trade
c.
Exporting
d.
Countertrade
e.
Licensing

1 Answer

0 votes

Final answer:

The correct form of franchising among the options provided is 'e. Licensing.' A franchise involves a franchisee paying a fee for the rights to operate a business with the franchisor's brand and receive associated support.

Step-by-step explanation:

The form of franchising among the given options is e. Licensing. A franchise is a specific type of business arrangement where an individual or entity (the franchisee) is granted the rights to operate a business using the branding, systems, and business model of an established company (the franchisor). The franchisee typically pays an upfront franchise fee and ongoing royalty fees for the support and the right to use the franchisor's intellectual property.

In comparison, let's briefly review the other options:

  • Direct investing refers to purchasing a substantial interest in a company or property in another country.
  • Barter trade involves the direct exchange of goods or services without the use of money.
  • Exporting is the selling of goods or services produced in one country to buyers in another country.
  • Countertrade is a broader term that encompasses various forms of trading in which goods or services are exchanged partially or entirely for other goods or services, rather than for hard currency.

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