In Licensing Arrangements,which of the Following Is Not True

question 25

Multiple Choice

In licensing arrangements,which of the following is not true?

• A) The licensee can gain technical expertise.
• B) Companies can be aided in entering new countries directly.
• C) The licensee might become a competitor to the licensing firm if they license their distinctive competencies.
• D) Companies should never license their distinctive competencies.
• E) The licensee is usually following a differentiation strategy.

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Definitions:

Shortage Costs

Shortage costs are the expenses incurred by a business when it does not have enough inventory or resources to meet demand, including lost sales and dissatisfied customers.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Investment

Assigning monetary assets in hopes of achieving financial gain or income.

Cash Flow Timeline

A visual representation that shows the schedule of inflows and outflows of cash within a business over a specific period.