Which of the Following Statements Is True About Licensing and Franchising

question 1

Multiple Choice

Which of the following statements is true about licensing and franchising?

• A) It involves setting a fully operational independent entity in a foreign country to conduct business.
• B) Unlike franchising,licensing is used by service firms such as hotels and fast-food chains.
• C) Like franchising,licensing is a high-cost means of market entry.
• D) The most important risk involved with licensing is the potential loss of proprietary advantage.

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Definitions:

Total Revenue

The total amount of money received by a company from sales of its products or services before any expenses are subtracted.

Inelastic

Describes a situation where the demand or supply of a good or service is relatively unresponsive to changes in price.

Total Revenue

The total amount of money generated by selling goods or services before any expenses are subtracted.

Opposite Directions

A term potentially used to describe actions or movements that are completely contrary to each other in orientation or aim.