Which of the Following Is a Disadvantage of the International

question 20

Multiple Choice

Which of the following is a disadvantage of the international business strategy of licensing?

• A) It subjects the original firm to high transportation expenses.
• B) The profits of a firm using this strategy are limited to those it receives from royalty payments.
• C) It allows a firm to enter a foreign market in high-risk conditions.
• D) The costs of licensing are quite high and must be borne solely by the original firm.

Calculate the data storage capacity and utilization.

Understand and apply the concept of investment appreciation in the stock market.

Forecast staffing needs based on student-teacher ratios or other proportional relationships.

Break down financial contributions into ratios.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and profit generation.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core operations.

Direct Labor Efficiency Variance

A financial metric that analyzes the difference between the actual hours worked and the standard hours expected for the production achieved.