Which of the Following Is a Most Likely Reason for a Firm

question 11

Multiple Choice

Which of the following is a most likely reason for a firm to enter a licensing agreement?

• A) A licensing arrangement allows firms to enter a foreign market without direct foreign investments.
• B) For a firm to enter into a licensing agreement, it must have substantial capital.
• C) A licensing agreement does not require firms to follow the local laws where they operate.
• D) A licensing arrangement is used only if the firms have strong management skills and marketing strategies in the regions where they operate.
• E) A licensing agreement is a risk free method for firms to expand in foreign markets.

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Definitions:

Conceal

To hide something or prevent it from being seen or known.

Team Maintenance

Activities and behaviors that support the social and psychological well-being of a team, ensuring its continued effectiveness.

Task-Oriented

Focused on completing specific tasks or objectives rather than on broader or more abstract goals.

Self-Oriented

Focused on oneself, often prioritizing personal goals, needs, or desires.