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:

Borrowed

Describes money that has been taken from another party with the agreement that it will be repaid, typically with interest.

Daily Interest

Interest calculation method where the interest is accrued daily.

Savings Account

A bank account where money is kept so that it can earn interest over time, typically used for holding funds that are not needed for daily expenses.

Annual Simple Interest

Interest calculated once a year on the principal sum, without compounding.