In which revenue model does an existing business allow another party to trade under the name of that business?

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BlackTom AI · Accepted Answer

Consider the question: In which revenue model does an existing business allow another party to trade under the name of that business? 
Option 1: a franchising revenue model. This is the mechanism where a franchisor grants a franchisee the right to operate a business using the franchisor's brand, systems, and support, effectively letting the franchisee trade under the established business name. Fees and ongoing royalties are typical revenue streams for the franchisor. 
Option 2: an intermediation revenue model. This model focuses on bringing buyers and sellers together and earning fees for facilitating the transaction, but it does not involve allowing another party to use the original brand name to trade under it. 
Option 3: a brokerage model. Similar to intermediation, a brokerage earns commissions by connecting parties, not by letting others operate under the brand name. The key distinction is branding and operating rights, which this option lacks. 
Option 4: an advertising model. This model earns revenue primarily through ads, not by granting rights to trade under the original business name. It does not involve brand licensing or franchise-like operations. 
In summary, only the franchising revenue model aligns with authorizing another party to trade under the business’s name, while the others describe mechanisms focused on matching, commissions, or advertising rather than brand licensing.

Introduction to Entrepreneurship (H) - Syracuse University EEE370 - 3 - Beatty - Preparatory Academy - 1st Semester - 2025/2026 Unit 3: Exam- Requires Respondus LockDown Browser

In which revenue model does an existing business allow another party to trade under the name of that business?

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Introduction to Entrepreneurship​ (H) - Syracuse University EEE370 - 3 - Beatty - Preparatory Academy - 1st Semester - 2025/2026 Unit 3: Exam- Requires Respondus LockDown Browser

In which revenue model does an existing business allow another party to trade under the name of that business?

查看解析

登录即可查看完整答案

类似问题

A(n)________ exists when a franchisor licenses retailers to sell its products subject to various sales and service conditions.

Ford uses a(n)________, whereby the company licenses dealers in North America to sell Ford automobiles subject to various sales and service conditions.

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Which of the following best represents a potential drawback for a hotel operating under a franchise agreement?

Jessa has paid an upfront lump sum plus a royalty on all sales to a specific fast-food company in return for the right to operate a business using its name and format in a specific location. This agreement makes Jessa a

更多留学生实用工具

希望你的学习变得更简单

Introduction to Entrepreneurship (H) - Syracuse University EEE370 - 3 - Beatty - Preparatory Academy - 1st Semester - 2025/2026 Unit 3: Exam- Requires Respondus LockDown Browser