Theodore and James Decide to Enter into an Agreement with a Firm

Multiple Choice

Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use their software, brand name, and business methods in return for a lump sum payment and a percentage of sales. The European firm is a service organization that plans to use the software to serve its customers. Their agreement is a(n) ________.

A) export agreement
B) licensing agreement
C) franchise agreement
D) import agreement