Which of the Following Is a Reason a Firm May

question 5

Multiple Choice

Which of the following is a reason a firm may enter a licensing agreement?

• A) Licensing allow firms to enter a foreign market without direct foreign investments.
• B) A firm enters a licensing agreement to expand once it has substantial capital.
• C) Licensing is the next step a firm must take, after it has established sufficient research and development.
• D) Licensing is a technique that firms use when applying management skills and marketing strategies.
• E) Licensing agreement is a risk free method to expand in foreign markets.

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Definitions:

Buyer's Household Members

Individuals living in the same residence as the buyer, often considered by retailers for marketing or loyalty purposes.

Waive Warranties

involves the voluntary relinquishment of certain guarantees or assurances, typically regarding the condition or quality of goods and services, by a buyer or recipient.

Implied Warranties

Unspoken, unwritten assurances that a product or service meets certain quality standards and is fit for the purpose sold, even though not expressly stated.

Express Warranties

Explicit assurances provided by the seller about the quality, performance, or condition of a product.