Which of the Following Is True of Licensing

question 67

Multiple Choice

Which of the following is true of licensing?

• A) Licensing is used when a firm possesses some tangible property but does not want to pursue a potential application itself.
• B) The firm does not have to bear the development costs and risks associated with opening a foreign market.
• C) It is an attractive option when a firm is interested in pursuing a foreign market and is ready to commit substantial resources to a foreign market.
• D) It is an attractive option for firms that have the capital to open overseas markets.

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Definitions:

Stated Annual Rate

The interest rate of a financial product, such as a loan or savings account, as advertised before the effects of compounding and fees.

Cost

The value or price paid to acquire, produce, or maintain a good or service.

Time Value

The time value of money concept suggests that money available now is more valuable than the same amount in the future due to its potential earning capacity.

Cash Sales

Transactions where goods or services are paid for with cash or its equivalent at the time of sale, without delay.