ABC Co Wants to Market Their Products in Brazil

Multiple Choice

ABC Co. wants to market their products in Brazil. Armed with the design and manufacturing capability, ABC looks for a company with the distribution channels and knowledge of the Brazilian culture necessary to market their products. After conducting research, ABC decides to form a partnership with XYZ Inc. in Brazil. The company will be jointly owned and operated. In this scenario, ABC Co. forms a(n) __________ with XYZ Inc.

A) franchise
B) joint venture
C) licensing agreement
D) operating subsidiary