An Advantage of Licensing as a Method of Entering Global

question 30

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:

Profit Maximization

The process of increasing the profits of a business by adjusting production and sales operations.

Business Ethics

Principles and standards that guide behavior in the world of business, dictating how businesses should conduct themselves.

Right Versus Wrong

A moral or ethical dilemma focusing on understanding and distinguishing between actions or decisions that are considered morally good or bad, right or unjust.

Corporate Social Responsibility

The concept that businesses should be actively concerned with the welfare of society at large, not just their own interests.