What Do You Mean by Licensing and Discuss the Advantages & Disadvantages Elaborately

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Question 6) Different companies definition:-

Multinational
Transnational

ANSWER
An enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation. Transnational companies are much more complex organizations. They have invested in foreign operations, have a central corporate facility but give decision-making, R&D and marketing powers to each individual foreign market.
Examples of TNCs include: *  Nestlé *  Unilever *  Cadbury-Schweppes *  BP-Amoco
ANSWER
Franchise, join venture, licencing (Coca-Cola), acquisition (Vodafone)
This is the most common form of franchising. A true business format franchise occurs when the owner of a business (the franchisor) grants a licence to another person or business (the franchisee) to use their business idea - often in a specific geographical area.
The franchisee sells the franchisor's product or services, trades under the franchisor's trade mark or trade name, and benefits from the franchisor's help and support.
In return, the franchisee usually pays an initial fee to the franchisor and then a percentage of the sales revenue.
Advantages
* Your business is based on a proven idea. You can check how successful other franchises are before committing yourself. * You can use a recognised brand name and trade marks. You benefit from any advertising or promotion by the owner of the franchise - the 'franchisor'. * The franchisor gives you support - usually including training, help setting up the business, a manual telling you how to run the business and ongoing advice. * You usually have exclusive rights in your territory. The franchisor won't sell any other franchises in the same territory. *…...

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