Which of the Following Best Compares Licensing and Exporting as Tools

question 68

Multiple Choice

Which of the following best compares licensing and exporting as tools for entering foreign markets?

• A) Licensing and exporting are both low-risk methods, but licensing is not as simple as exporting.
• B) Licensing is riskier and more complicated than exporting.
• C) Exporting is much riskier and more complicated than licensing.
• D) Licensing and exporting are both low-risk, but exporting is more complicated.
• E) Licensing and exporting are both complicated and expensive methods.

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Definitions:

Sales Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are subtracted.

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, inventory, and other items on credit.

Accounts Payable

Accounts payable is the amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.

Inventory

Raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.