Which of the Following Is an Advantage of Licensing

question 44

Multiple Choice

Which of the following is an advantage of licensing?

• A) The licensee is not required to invest money in the business.
• B) The licensor has more control over the licensee than it does in its own operations.
• C) The licensee gains recognition without having to develop a product from scratch.
• D) The licensor earns profits without having to share its intellectual property with anyone.
• E) The licensor faces no threats of competition from the licensee after the contract ends.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, representing a measure of producer welfare.

Market Price

The ongoing price point for transactions involving assets or services in the open market.

Costs Of Production

Expenses incurred during the process of creating a product or service, including raw materials, labor, and overhead costs.

Firm

A business organization, such as a corporation or partnership, which sells goods or services in exchange for money.