All of the Following Are Disadvantages of Licensing Except Which

question 214

Multiple Choice

All of the following are disadvantages of licensing except which?

• A) The licensor has reduced potential profits compared to direct investment.
• B) The licensor incurs higher costs for product manufacturing in the foreign country.
• C) The licensor forgoes control of its product.
• D) Should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
• E) The licensor may be creating its own competition.

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Definitions:

Deposits

Sums of money placed into an account or with a financial institution for safekeeping and/or to earn interest.

Check Register

A logbook used by individuals to track checks issued, deposits made, and current balance in their checking account; a tool for personal financial management.

Cash Balance

The total amount of cash or cash equivalents available in a company’s account at any given time.

Deposit

A sum of money placed into an account or given as security for a financial agreement.