Licensing Is a Process in Which a Firm Wanting to Enter

question 25

Multiple Choice

Licensing is a process in which a firm wanting to enter a market must

• A) require all potential customers to obtain government permission to purchase the product.
• B) notify the government within a certain period after it has entered the market.
• C) pay all overdue taxes before entering the market.
• D) obtain permission from the government to enter the market.

---

Definitions:

Straight-Line Depreciation

An approach to evenly spread an asset's purchase price over the span of its useful life.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the strategic objectives of an organization, such as acquiring new machinery or expanding operations.

Incremental Sales

Additional sales generated by a specific business activity or decision, such as a marketing campaign or product launch.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct labor and materials costs.