Software Entrepreneurial Venture (Scenario)

Multiple Choice

Software Entrepreneurial Venture (Scenario)
Talal and Jibran have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, but in looking for opportunities in the future, they decide to explore international operations.
-Talal and Jibran decide to allow a firm in Europe to use the rights to their software, its brand name, and software specifications in return for a lump-sum payment. The firm is a service organization that plans to use the software to assist its customers. This agreement is known as a ________.

A) licensing agreement
B) foreign subsidiary
C) franchise
D) strategic alliance