A famous designer agrees to the use of his name on a men's cologne in exchange for a royalty. What kind of business arrangement is this?
(A) Licensing
(B) Franchise
(C) Strategic alliance
(D) Joint ownership
(E) Patent
Answer: A licensing agreement involves one business entity granting another the right to the use of a patent, trademark, or other right such as the right to use a name in exchange for a royalty, choice A.