An Advantage of Licensing Is That Licensors Spend Little or No

question 163

True/False

An advantage of licensing is that licensors spend little or no money to produce and market their products. These costs are paid for by the licensees.

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Definitions:

Taxes

Compulsory financial charges or levies imposed by a government on individuals, businesses, or other entities to fund government spending and services.

Lease

A contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset for a specified period of time.

Financial Lease

A lease agreement where the lessee assumes some of the risks and benefits of ownership.

Sale and Leaseback

A financial transaction where an entity sells an asset and then leases it back from the buyer, typically to free up capital while retaining asset use.