Which of the Following Is a Potential Drawback of Licensing

question 17

Multiple Choice

Which of the following is a potential drawback of licensing?

• A) If quality is compromised, it may reflect poorly on the company providing the licence.
• B) Licensing will provide the original producer with much foreign marketing experience.
• C) It is a relatively inexpensive way to market your product internationally.
• D) It is an extremely expensive and highly involved method of international expansion.
• E) It provides no compensation for the original company.

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Definitions:

Marginal Revenue

The supplementary income generated through the sale of an additional unit of a good or service.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Job Satisfaction

The degree to which an individual feels positively or negatively about a job.

Organisational Loyalty

The level of commitment an individual has towards their organization, often reflecting in their willingness to stay with and support the organization.