Which of the Following Is Not True of Licensing

question 19

Multiple Choice

Which of the following is not true of licensing?

• A) Licensing allows a firm to purchase the right to manufacture and sell another firm's products within a specific country or set of countries.
• B) The licensor is normally paid a royalty on each unit sold.
• C) Licensors have considerable control the manufacturing and marketing of their products marketed in foreign countries.
• D) The licensee takes the risks and makes the investments in facilities for manufacturing, marketing and distribution of goods and services.
• E) Licensing is an increasingly popular entry mode for smaller firms with insufficient capital and limited brand recognition.

---

Definitions:

Diversity

Refers to the inclusion and representation of different types of people and their experiences, often considering race, ethnicity, gender, sexuality, age, and other factors.

Communist Party

A political party advocating for the principles of communism, aiming at the creation of a classless society where property and the means of production are communally owned.

Congress of Industrial Organizations

A federation of labor unions in the United States, formed in 1935, which focused on industrial unionism and played a major role in labor movements of the 1930s and 1940s.

Grand Coulee Dam

A large dam on the Columbia River in the state of Washington, constructed between 1933 and 1942, significant for hydroelectric power production and irrigation.