All of the Following Are Disadvantages of Licensing Except Which

question 82

Multiple Choice

All of the following are disadvantages of licensing except which?

• A) The licensor has reduced potential profits compared to direct investment.
• B) The foreign country does not benefit from increases in local employment for product manufacturing.
• C) The licensor forgoes control of its product.
• D) Should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
• E) The licensor may be creating its own competition.

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Definitions:

Distinctive Guise

A unique appearance of a product or packaging that signifies exclusive source, identity or origin, typically relevant in trademark law.

Certification Mark

A mark used by a certified organization to indicate that products or services meet a certain standard of quality or performance.

Registered

Officially listed or entered on a record or registry for recognition, control, or protection purposes.

Written Employee Contract

A formal agreement between an employer and an employee that explicitly states the terms of employment, including duties, compensation, and conditions of work.