Which of the Following Is an Advantage of Licensing

question 1

Multiple Choice

Which of the following is an advantage of licensing?

• A)Licensing is the most economical method of going global.
• B)The firm has equal control over the licensee as it would over its own operations.
• C)The licensee gains a name without having to start from scratch.
• D)If the licensee is successful, the firm earns more profits than it would do on its own.
• E)The firm does not have the risk of creating a future competitor in the form of the licensee once the contract ends.

---

Definitions:

Linear Programming

A mathematical method used to achieve the optimal outcome in a model whose requirements are represented by linear relationships.

Aggregate Planner

A professional role responsible for developing, executing, and monitoring a production plan that balances demand and supply over a medium-term horizon, typically focusing on general levels rather than specifics.

Mixed Strategy

In game theory, a strategic plan in which a player utilizes a mixture of actions, each with a specific probability, to ensure unpredictability.

Chase Strategy

A management approach where production meets the exact demand for goods, reducing inventory costs by producing only what is needed.