Which of the Following Is an Advantage of Licensing

question 44

Multiple Choice

Which of the following is an advantage of licensing?

• A) The licensee is not required to invest money in the business.
• B) The licensor has more control over the licensee than it does in its own operations.
• C) The licensee gains recognition without having to develop a product from scratch.
• D) The licensor earns profits without having to share its intellectual property with anyone.
• E) The licensor faces no threats of competition from the licensee after the contract ends.

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Definitions:

Health Care Costs

The total expenditures for services and products related to the treatment and prevention of disease or the maintenance of health.

Overallocation

A situation where resources are allocated in excess to a particular good or service, often leading to inefficiency and waste.

Resources

Assets, materials, or substances that are available and valuable in producing goods or providing services.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit, caused by an economic transaction.