Question

Zollien, a manufacturer of men's shirts and jackets, has reached an agreement with Arbrada Inc. According to the agreement,Zollien will pay Arbrada a substantial fee for the right to use Arbrada's name and logo on some of its clothing lines. This type of arrangement is known as:________

A. licensing.
B. cannibalization.
C. line extension.
D. acquisition.

Answer 1

A. Licencing

Step-by-step explanation:

A licencing is a type of business agreement in which a company gives another company the permission to manufacture its products, use its brand for a specified payment known as royalties.

It is an arrangement between the licensor and licensee. The licensor is the one who grants the other party the permission to use its trademark or brand name while the licensee is the party to which permission to use a trademark is granted.