Asked by jazell freeman on Jul 05, 2024
Verified
Crimson Corp., an American apparel company, has a tie-up with a European football club. Crimson sells a line of jerseys with the football club's logo on it. The company has to pay a percentage of its earnings from the sales of the jerseys to the football club. In this scenario, the payments are called _____.
A) royalties
B) patents
C) quotas
D) embargoes
Royalties
Payments from the licensee to the licenser consisting of a percentage of what is earned from selling such products and services.
- Comprehend the advantages and obstacles associated with global commerce.
Verified Answer
MC
Magali CastroJul 09, 2024
Final Answer :
A
Explanation :
The payments are called royalties because they are a percentage of the earnings from the sales of the jerseys paid to the football club for using its logo, which is a common practice in licensing agreements.
Learning Objectives
- Comprehend the advantages and obstacles associated with global commerce.
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