Which of the Following Is a Disadvantage of Licensing for Technological

question 81

Multiple Choice

Which of the following is a disadvantage of licensing for technological firms?

• A) It is not appropriate for entering markets that pose substantial country risk.
• B) It requires high capital investment and the presence of the technological firm in the foreign market.
• C) It restricts flexibility in the foreign market due to the technological firm's ownership of key assets in the target market.
• D) It increases the risk of creating a future competitor.

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Definitions:

Coefficient Of Determination

A statistical measure, often denoted as R^2, that represents the proportion of the variance in the dependent variable predictable from the independent variable(s).

Positive Value

A numerical quantity greater than zero, indicating a magnitude or amount in the absence of direction or dimension.

Error Term

The part of an observation in regression analysis that the model does not explain, often considered as random noise.

Expected Value

The predicted average of a random variable, calculated by multiplying each possible outcome by its probability and summing the results.