Which of the Following Is a Disadvantage Associated with Licensing

question 152

Multiple Choice

Which of the following is a disadvantage associated with licensing?

• A)lower wages and prices
• B)creates its own competition
• C)increase of profit potential
• D)complete control of the product

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Definitions:

Operating Cash Inflows

Cash received by a company from its operational activities, such as sales revenue minus the operating expenses.

Working Capital Investment

Funds invested in the short-term assets of a company, such as inventory and receivables, to support its day-to-day operations.

Profitability Index

A financial tool used to measure the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Working Capital Investment

The funds invested in the short-term assets of a company, such as inventory and receivables, to support its daily operations.