What term best refers to a business that gives another company permission to manufacture its products in exchange for a percentage of sales?
(1 point)
Responses
licensor
licensor
shareholder
shareholder
licensee
licensee
lobbyist
The term that best refers to a business that gives another company permission to manufacture its products in exchange for a percentage of sales is "licensor".
The term that best refers to a business that gives another company permission to manufacture its products in exchange for a percentage of sales is "licensor."
The term that best refers to a business that gives another company permission to manufacture its products in exchange for a percentage of sales is "licensor." To arrive at this answer, we can break down the options and eliminate the ones that do not fit the given scenario.
1. Licensor: This term refers to the business that grants a license to another company, allowing them to manufacture its products.
2. Shareholder: A shareholder is an individual or entity that holds ownership in a company by owning its shares of stock.
3. Licensee: This term refers to the business that obtains the license from the licensor to manufacture and sell the licensed products.
4. Lobbyist: A lobbyist is an individual or organization that influences government decisions and policies on behalf of their clients.
From these options, the term "licensor" is the most appropriate because it accurately describes the business that allows another company to manufacture its products in exchange for a percentage of sales.