Which of the Following Is a Drawback of Technology Licensing

question 10

Multiple Choice

Which of the following is a drawback of technology licensing?

• A) The licensee can sever the licensing relationship and become a competitor after gaining access to the licensor's technology.
• B) The licensee runs the constant risk that the licensor will provide inferior service.
• C) Licensing maximizes the physical and financial presence of a business overseas, thereby exposing it to risks.
• D) Licensing escalates the risks of suffering devastating losses in the event of an expropriation.

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Definitions:

Product Line

A series of related products offered by a single company designed to serve a particular customer need or market.

Goods

Goods are tangible products or items that can be sold or bought, providing satisfaction and value to the consumer, ranging from food items to electronic gadgets.

Cannibalization

When a company's new product eats into the sales of one of its existing products.

Disruptive Technology

An innovation that significantly alters the way consumers, industries, or businesses operate, often displacing established technologies.