With Licensing the ________ Is Likely to Be Lower Than

question 25

Multiple Choice

With licensing the ________ is likely to be lower than with FDI because of lower profits; however, the ________ is likely to be higher due to a greater return per dollar invested.

• A) IRR; NPV
• B) NPV; IRR
• C) cost of capital; NPV
• D) IRR; cost of capital

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Definitions:

Lecithin

A fatty substance found in plant and animal tissues, acting as an emulsifier in food products.

Long-chain Alcohols

Alcohols containing a long chain of carbon atoms, typically more than twelve, used in detergents, emulsifiers, and solvents.

Fatty Acids

Long-chain hydrocarbon molecules with a carboxylic acid group, important as sources of energy and as components of cell membranes.

Sodium Palmitate

A sodium salt of palmitic acid, used in soap making and as a surfactant in cosmetics.