One of the Larger Concerns Related to the Licensing Process

question 12

Multiple Choice

One of the larger concerns related to the licensing process is that _______________.

• A) providing technology to a foreign partner can result in the creation of a competitor
• B) it is one of the most costly forms of market entry
• C) it involves the inclusion of multiple intermediaries
• D) royalties do not often translate into direct profits for the licensor

---

Definitions:

Manufacturing Overhead

This includes all the indirect costs involved in manufacturing a product, such as utilities, depreciation, and salaries of supervisors.

Budgeted Costs

Estimated expenses for future periods, used for planning and controlling financial resources.

Idle Plant Assets

Fixed assets that are not currently in use for production, operations, or providing services, often due to reduced demand or operational changes.

Operating Assets

Assets that are used in the day-to-day operations of a business to generate revenue, excluding investment and non-operational assets.