Which of the Following Is a Potential Drawback of Licensing

question 44

Multiple Choice

Which of the following is a potential drawback of licensing?

• A) If quality is compromised, it may reflect poorly on the company providing the license.
• B) Licensing will provide the original producer with much foreign marketing experience.
• C) It is a relatively inexpensive way to market your product internationally.
• D) It is an extremely expensive and highly involved method of international expansion.
• E) It provides no compensation for the original company.

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the influence of situational factors when interpreting the behavior of others.

Environmental Factors

External elements like climate, geography, and pollution that can affect organisms and their development.

Self-Serving Bias

The common tendency to attribute one's successes to personal characteristics and failures to external factors.

Rose-Colored Glasses

An idiom describing an overly optimistic and unrealistic perspective on situations, where negative aspects are overlooked or dismissed.