APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 125

A service organization is planning to enter into a foreign market and is willing to share its intangible assets. These assets include process expertise, training, and methods of operations. Which of the following entry methods is most suitable for this organization?

Answer options

• A. Licensing
• B. Joint venture
• C. Partnering
• D. Franchising

Correct answer: C

Explanation

The correct answer is C, Partnering, as it allows the organization to collaborate and share its intangible assets effectively while entering a new market. Licensing and franchising involve more structured agreements that may not fully leverage the organization's expertise. A joint venture may require a more significant commitment and shared ownership, which may not align with the organization's willingness to share only specific assets.