A Disadvantage of Licensing Is That the Licensing Company (Licensor)

question 17

Multiple Choice

A disadvantage of licensing is that the licensing company (licensor)

• A) May lose control over its technology.
• B) Takes on greater political risk.
• C) Takes on greater development costs.
• D) Realizes higher profit margins.
• E) Frequently grows too fast as a result.

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Definitions:

Staples

Everyday office supply products such as paper, pens, and staplers.

Office Supply Chain

The comprehensive flow of office goods and services from suppliers to consumers within an office or organizational setting.

Robots

Programmable machines capable of performing a series of complex actions automatically.

Chambersburg

A town in Pennsylvania, USA, recognized for its historical significance and cultural heritage.