Licensing Would Be a Good Option for Firms in Which

question 31

Multiple Choice

Licensing would be a good option for firms in which of the following industries?

• A) It would be a good option in high-technology industries in which protecting firm-specific expertise is of paramount importance.
• B) It would be a good option in global oligopolies, in which competitive interdependence requires that multinational firms maintain tight control over foreign operations.
• C) It would be a good option in industries in which intense cost pressures require that multinational firms maintain tight control over foreign operations.
• D) It would be a good option in fragmented, low-technology industries in which globally dispersed manufacturing is not an option.

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Definitions:

Par Common Stock

The face value of common stock as stated in the corporate charter, which is the minimum amount at which shares can initially be sold.

Par Preferred Stock

A type of preferred stock that is issued at its nominal or face value, and typically has a fixed dividend rate.

Debit to Cash

An accounting entry that increases the cash balance in a company's books.

Paid-In Capital

The total amount of money investors have contributed to a company in exchange for equity.