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:

Adjustment

An accounting entry made into the books before the preparation of financial statements to allocate income and expenditure to the correct period.

Balance Sheet Approach

A method of accounting that focuses on reporting asset, liability, and equity balances.

Bad Debts Expense

Bad debts expense represents the loss that a company anticipates or realizes due to the inability to collect payments from customers or clients who have failed to fulfill their financial obligations.

Allowance for Doubtful Accounts

An accounting provision that represents the estimated amount of receivables that may not be collected, reducing the net value of accounts receivable.