Which of the Following Is True of Licensing

question 53

Multiple Choice

Which of the following is true of licensing?

• A)The core brand is partially responsible for financially supporting the company seeking the license.
• B)It involves a payment of fee to the core brand.
• C)All the benefits of a licensed product go to the core brand, and the core brand enjoys limited liability.
• D)The core brand takes on negligible risks in the licensing agreement.

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Definitions:

Outlay Cost

Expenses directly associated with the production of goods or services, such as materials and labor.

Variable Selling Costs

Expenses that change in proportion to the volume of sales, such as commissions and shipping costs.

Sales Forecasts

Projections of future sales revenue, based on market analysis, historical data, and other estimations.

Actual Costs

The real costs incurred in the production of goods or services, including all direct and indirect expenses.