Which of the Following Is a Disadvantage of Licensing

question 84

Multiple Choice

Which of the following is a disadvantage of licensing?

• A) The licensing company gains entry into a foreign market at a high risk.
• B) It takes a lot of time for the licensee to gain production expertise and name.
• C) Licensing is a complex way for a manufacturer to enter international marketing.
• D) The licensor potentially creates a competitor in the form of the licensee.
• E) The licensee is restricted from gaining knowledge about the licensor's intellectual property.

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Definitions:

Social Norm

Unwritten rules or expectations for behavior within a society or group, guiding members on how to act in typical situations.

Entrapment

A legal defense theory claiming that agents of the government induced a person to commit a crime they would not have otherwise committed.

Authority

In social psychology, it refers to the power or right to give orders, make decisions, and enforce obedience.

Disobey

The act of not following a rule or order.