Which Statement Identifies a Risk of Licensing in an International

question 25

Multiple Choice

Which statement identifies a risk of licensing in an international market?

• A)The licensor doesn't know enough about the brand.
• B)The licensor may misuse trademarks.
• C)The licensor has to pay the licensee money to enter the arrangement.
• D)The licensor may end up creating its own competition.
• E)Locally owned licensees don't know much about the local customers.

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Definitions:

Majority Vote

A voting outcome that is achieved when more than half of the votes cast are in favor of a proposition or electing a candidate.

Rules of Agency

Legal guidelines governing the relationship between an agent, who acts on behalf of another person or entity (the principal), and the principal itself.

Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a stake in the company's equity.

Majority Vote

A voting rule used in decision-making processes where more than half of the votes cast by eligible participants is required to make a decision or elect a candidate.