A marketing arrangement allowing another business to trade in the same style as an existing business.

• A. Royalty Fee
• B. Franchise
• C. Franchiser
• D. Market Research

Answer: (B)

This is franchising. A franchise is a marketing arrangement where one business (the franchiser) lets another operator run a business in the same style, using the same brand and operating methods. The franchisee benefits from a proven model, brand recognition, and support in exchange for fees, including ongoing royalties. That makes it the best fit for the description. The other terms aren’t the arrangement itself: a royalty fee is just a payment made within such an arrangement, the franchiser is the company that grants the franchise, and market research is about gathering information to inform decisions, not about trading under a shared brand.