Which of the Following Is an Advantage of Licensing

question 41

Multiple Choice

Which of the following is an advantage of licensing?

• A) It is ideal for products, services, or knowledge that is highly complex.
• B) It is easy to maintain control over how the licensed asset is used.
• C) It requires very little capital investment in the foreign market.
• D) It guarantees a basis for future expansion in the market.

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Definitions:

Pre-Merger Value

The valuation of a company before it enters into a merger or acquisition, often used to assess the financial impact of the merger.

Additional Value

The extra worth created by an investment, project, or action beyond the initial cost or investment.

Price Premium

The additional amount that a consumer is willing to pay for a product or service over its basic cost, often due to perceived superior value.

Market Value

The existing cost for buying or selling an asset or service in the marketplace.