Question

"Scuba Diving." Marcy invented a new type of mask that was not subject to fogging forscuba divers and obtained a patent on it. She agrees to allow Jenny to manufacture and sell the mask. She receives a sum of money for every mask that Jenny sells. Marcy also entered into an agreement with Frank to allow him to sell the masks, but only if he also purchased non-patented diving suits from Marcy. All parties proceeded to do very well with their sales.Payments that Marcy would receive from Jenny for the sale of the mask are referred to as which of the following?A. ProfitsB. ReceiptsC. RoyaltiesD. PayoffsE. Illegal

Answer 1

The correct option is C,royalties

Step-by-step explanation:

Royalties refers to payment received by the owner of patent from the individuals making use of the patented design or product as a reward for creativity and originality.

Profits are excess of revenue over costs of doing business overall

Receipts are inflows of cash and cash equivalents to the business either form sales transactions or from sources such as disposal of assets as well as issuance of shares.

Payoffs refers to the amount paid to an employee either upon retirement or on leaving a job