Licensing Is Best Described As

question 68

Multiple Choice

Licensing is best described as: 

• A) a nonequity method of international business in which an entrepreneur contracts his or her management techniques and skills to a (foreign) purchasing company.
• B) a method of doing international business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners.
• C) a method that involves giving a foreign manufacturer the right to use a patent, technology, production process, or product in return for the payment of a royalty.
• D) an equity partnership that involves selling patents to foreign governments.

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Definitions:

Vertical Integration

Refers to the common ownership of two firms in separate stages of the vertical supply chain that connects raw materials to finished goods.

Higher Taxes

An increase in the mandatory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

New Product

An item that has been recently introduced to the market, offering new or improved features, functionalities, or benefits.

Rent Control

Government policies or laws that limit the amount landlords can charge for leasing residential properties in order to keep housing affordable.