Which of the Following Is True of Licensing

question 89

Multiple Choice

Which of the following is true of licensing?

• A) It involves bearing the development costs and risks associated with opening up a foreign market.
• B) It can be an attractive option in unfamiliar or politically volatile markets.
• C) It ensures that the firm has tight control over manufacturing, marketing, and strategy that is required for realizing economies of scale.
• D) It is the most common strategy for large-scale companies.

---

Definitions:

Cost Estimation

The process of predicting the costs of producing a product or service, typically involving historical data analysis and forecasting techniques.

Cost Line

A graphical representation of the costs incurred by a company, set against a range of production or service volumes.

Relevant Range

The range of activity within which the assumptions about fixed and variable costs are valid for the purposes of cost behavior analysis and budgeting.

Activity Levels

Various measures of activity within a company, such as production volume or sales, that can influence costs and operational performance.