One of the Advantages of a License Arrangement Is That

question 82

True/False

One of the advantages of a license arrangement is that it can create export market opportunities and open the door to a high-risk manufacturing relationship.

---

Definitions:

Held-to-Maturity Securities

Debt securities that a firm has the positive intent and ability to hold until maturity.

Parent-Subsidiary Relationship

A corporate structure dynamics where one company (the parent) controls another company (the subsidiary) through ownership of a majority of its voting stock.

Common Stock

Equity ownership in a corporation, with holders having a vote in company matters but typically last in line for claims on assets.

Fair Value Method

An accounting approach where assets and liabilities are reported at their current prices or the estimated amount they would fetch in the market.