A Major Advantage of Licensing Is

question 39

Multiple Choice

A major advantage of licensing is

• A) these arrangements almost always lead to a joint venture.
• B) the bulk of the revenues gained by the licensee come back to the licensor.
• C) your company name does not need to be associated with the product in a foreign country.
• D) very little cost to the licensor.

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Definitions:

Common Fixed Expenses

Common fixed expenses are overhead costs shared across multiple segments or products of a business, like administrative salaries or building rent.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Sales Dollars

The total revenue generated from selling goods or services, measured in dollars.

Common Fixed Expenses

Expenses that do not change with the volume of production or sales and are shared among different segments or products of a business.