Licensing as a Market Entry Mode Has Several Disadvantages and Opportunity

question 49

Multiple Choice

Licensing as a market entry mode has several disadvantages and opportunity costs,which do not include:

• A)limited market control.
• B)agreement may have short life.
• C)leveraging and exploiting by licensee.
• D)similar product or technology development by licensee.
• E)adaptations by licensee to fit local tastes.

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Definitions:

LIFO Method

Last In, First Out method, an inventory costing method where the last items purchased are the first ones sold.

Ending Inventory

The value of goods available for sale at the end of an accounting period, determined by a physical count or by applying the cost flow assumption.

Specific Invoice Method

A method of inventory cost calculation that identifies and uses the actual cost of each specific item sold.

High-Cost Goods

High-cost goods are items that require a considerable amount of money to purchase due to their quality, rarity, or other factors.