How Can a Canadian Licensor Try to Prevent a Licensee

question 128

Multiple Choice

How can a Canadian licensor try to prevent a licensee from voiding its contract and using what it has learned to create a competitor?

• A)by using lawyers from both countries to write the licensing agreement
• B)by insisting that all licensees have a published code of ethics
• C)by having the licensee pay a fee for the use of the manufacturing process, trademark, patent, or other proprietary knowledge
• D)by locally registering patents and trademarks to the Canadian firm-not the licensee

---

Definitions:

Conversion Cost

Direct labor cost plus manufacturing overhead cost.

Equivalent Unit

A measure used in cost accounting to express the amount of work done on a product in terms of fully completed units.

Weighted-Average Method

A process costing method that calculates unit costs by combining costs and outputs from the current and prior periods.

Percentage Completion

A measure used in accounting and project management to indicate the progress of projects or production, based on the completion percentage of the total work.