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:

Factor Beta

Sensitivity of security returns to the realization of a systematic factor. Also called factor loading and factor sensitivity.

Economic Growth

The increase in the amount of goods and services produced by an economy over time, often measured by the annual percentage growth of a country's gross domestic product (GDP).

Equally-Weighted Portfolio

An investment portfolio where each asset is allocated the same proportion of the total investment, disregarding market capitalization.

Portfolio Return

The overall gain or loss of an investment portfolio, considering all sources of income and capital gains.