Question

Comfy Trend Inc., a clothing company in the United States, licenses a garment manufacturing firm in Tokyo to operate under its name and trademark. The firm also buys the rights to use Comfy Trend Inc.'s production and business methods. This scenario is an example of a:

a) Joint Venture
b) Franchise
c) Strategic Alliance
d) Merger and Acquisition

Answer 1

This scenario is an example of a franchise.

Step-by-step explanation:

This scenario is an example of a franchise. A franchise is when a company grants the rights to another company to operate under its name and trademark. In this case, Comfy Trend Inc. is licensing a garment manufacturing firm in Tokyo to use its name and trademark, as well as its production and business methods.