Define Licensing Agreements

question 21

Essay

Define licensing agreements. What are the advantages of this mode of international expansion?

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Definitions:

Cash Equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Mature

In finance, it refers to the stage at which an investment or financial instrument reaches its final due date and the principal is returned to the investor.

Long-term Investment

Investments held for an extended period, typically exceeding one year, with the intention of achieving higher returns over time.

Held-to-maturity Security

A debt security that a company has the intent and ability to hold until its maturity date, recorded at amortized cost.