Which of the Following Statements Is True of Licensing

question 78

Multiple Choice

Which of the following statements is true of licensing?

• A)Licensing restricts finances needed for international expansion.
• B)Cross licensing grants a company the right to use a property but does not grant it sole access to a market.
• C)A major advantage of licensing is that it is the least risky method of international expansion.
• D)Licensing increases the likelihood that a licensor's product will appear on the black market.

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Definitions:

Micro Division

A smaller, specialized unit within a larger organization or company that focuses on a specific aspect of the company's overall business.

Service Department Allocations

The process of distributing overhead costs from service departments to producing departments based on a predetermined criterion.

Income

The revenue that a business or individual receives within a specified period, including wages, profits, rents, and other earned amounts.

Residual Income

Income that remains after deducting all costs, expenses, and taxes necessary to sustain the operation of the business.