Cross-Licensing Often Occurs in the Semiconductor and Chemical Industries, and Other

question 72

Multiple Choice

Cross-licensing often occurs in the semiconductor and chemical industries, and other intellectual property is acquired in reciprocal licensing arrangements between firms in order to ________.

• A) divide the costs of production and marketing between competing firms
• B) avoid research duplication and building on each other's innovations
• C) protect the inventions and designs of small firms from large MNEs
• D) decrease the likelihood of industrial spying and theft among firms

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Definitions:

FIFO Method

First-In, First-Out method; an inventory valuation technique where the goods purchased or produced first are sold or used first.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant component of its cost.

Work in Process

Inventory representing the cost of unfinished goods in production, including labor, materials, and overhead.

Yield

The earnings generated and paid to investors for an investment, often expressed as a percentage of the price of the investment.