Which of the Following Is the Primary Disadvantage of Licensing

question 67

Multiple Choice

Which of the following is the primary disadvantage of licensing as a foreign market entry strategy?

• A) high transportation costs
• B) quality control
• C) It is usually a one-time activity.
• D) A firm loses partial control of its business operations.
• E) A firm in effect "teaches" a foreign company how to produce its proprietary products.

Recognize the impact of automatic behaviors and the conditions necessary for cognitive systems to override experiential systems.

Comprehend the relationship between explicit and implicit attitudes and their correlation.

Acquire insights into the use and definition of heuristics in decision-making.

Understand the process of memory consolidation and the role of unconscious in decision-making.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets such as cash, marketable securities, and accounts receivable.

Quick Ratio

A metric to evaluate a company's short-term liquidity position, calculated by dividing liquid assets by current liabilities.