All of the Following Are Disadvantages of Licensing Except

question 119

Multiple Choice

All of the following are disadvantages of licensing except

• A)the licensor reduces its potential profits gained from product sales.
• B)the foreign country gains employment by having the product manufactured locally.
• C)the licensor forgoes control of its product.
• D)should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
• E)the licensor may be creating its own competition.

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Definitions:

Marginal Utility

The added contentment or utility one gains from using an additional unit of a good or service.

Transferring Income

Transferring income involves reallocating resources or money from one group to another, often through mechanisms like taxation, welfare, or subsidies.

Total Utility

describes the total satisfaction or benefit that a consumer derives from consuming a certain quantity of goods or services.

Income Redistribution

The policy or process by which income is reallocated among individuals or groups in a society to reduce inequality.