Which of the Following Is an Advantage of Foreign Licensing

question 133

Multiple Choice

Which of the following is an advantage of foreign licensing over exporting?

• A) access to the local partners' pricing
• B) use of the local partner's distribution channels
• C) capital investment in foreign country
• D) slow entry into a foreign market

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Definitions:

IRS

The IRS (Internal Revenue Service) is the United States federal agency responsible for collecting taxes and administering the Internal Revenue Code.

SEC

The Securities and Exchange Commission (SEC) is a U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.

AICPA

The American Institute of Certified Public Accountants, a professional organization for Certified Public Accountants (CPAs) in the United States.

Limited Liability Company

A business structure in the United States that provides its owners with limited liability while allowing them to enjoy the tax and operational flexibility of a partnership.