An Advantage of Licensing as a Method of Entering Global

question 121

Multiple Choice

An advantage of licensing as a method of entering global competition is that the

• A)licensing company need not bear the costs and risks of opening up an overseas market.
• B)licensing company has control over its technology.
• C)licensing company has control over quality levels.
• D)licensing company has lower communication costs.
• E)licensee has lower production costs.

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Definitions:

Purchases

The total amount of goods and materials acquired by a business for resale or production within an accounting period.

Cost of Goods Available

The total cost of a company's inventory that is available for sale during a certain period.

Net Purchases

The total purchases minus returns, allowances, and discounts.

Beginning Inventory

The financial value of stock prepared for transaction at the start of a bookkeeping period.