A Disadvantage of Licensing Is That the Licensing Company

question 94

Multiple Choice

A disadvantage of licensing is that the licensing company

• 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)bears most of the risks associated.

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, based on assigned weights.

Free Cash Flow

A financial metric that represents the amount of cash a company generates after accounting for capital expenditures used to maintain or expand its asset base.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.

CEO's Ability

Refers to the skills, experience, and leadership qualities that a Chief Executive Officer possesses in managing and guiding a company.