Which of the Following Is NOT a Typical Disadvantage of Licensing

question 9

Multiple Choice

Which of the following is NOT a typical disadvantage of licensing?

• A)little control over the marketing of the products
• B)licensees may develop a competitive product after the license expires
• C)lower potential returns than the use of exporting or strategic alliances
• D)incompatibility of the licensing partners

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Definitions:

Stated Value

An assigned value to no-par value stock by the company for accounting purposes, often used to meet state regulations.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to a share of the company's profits and voting rights.

Par Value

The face value of a bond or stock as stated by the issuer.

Paid-in Capital

Paid-in capital represents the funds raised by a company through the sale of stock to shareholders, above the par value of the shares.