In respect of international business, a project is called a turnkey project because

The licensee agree to construct an entire plant in his home country and hands over the key
The licensor starts the operation and hands over the key of the operating plant to the licensee
The licensor starts the operation and then invites the licensee and hands over the key to complete the remaining work
The licensor and the licensee jointly carry out the project and agree to share profit equally

The correct answer is: A. The licensee agree to construct an entire plant in his home country and hands over the key.

A turnkey project is a project that is completed to the point where the customer can simply turn the key and begin using the product or service. In the context of international business, a turnkey project is one in which the licensor agrees to construct an entire plant in the licensee’s home country and then hands over the key to the licensee. The licensee is then responsible for operating the plant.

Option B is incorrect because the licensor, not the licensee, starts the operation. Option C is incorrect because the licensor does not invite the licensee to complete the remaining work. Option D is incorrect because the licensor and the licensee do not jointly carry out the project.

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