Which of the Following Is a Potential Drawback of Licensing

question 44

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 license.
• 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:

Tacit Knowledge

Knowledge gained from personal experience and context, often hard to articulate or transfer to others.

Formal

Refers to something done in accordance with rules of convention or etiquette; suitable for or constituting an official or important situation or occasion.

Explicit

Clearly expressed or fully stated in the actual text.

Practical Intelligence

A facet of intelligence that involves the ability to solve everyday problems by utilizing knowledge gained from experience in order to effectively deal with the tasks and challenges encountered in daily life.