Which of the Following Is an Advantage of Licensing

question 107

Multiple Choice

Which of the following is an advantage of licensing?

• A)It helps the firm to realize substantial experience curve and location economies.
• B)It gives a firm tight control over manufacturing,marketing,and strategy.
• C)The firm does not have to bear the development costs and risks associated with opening a foreign market.
• D)Firms can easily maintain control over how their technological know-how is used by the licensee.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded, recognizing costs as they are earned rather than when they are paid.

Spreadsheet Method

The spreadsheet method involves using software like Microsoft Excel to organize, calculate, and analyze data, often used for financial analysis and planning.

Retained Earnings

The stockholders’ equity created from business operations through revenue and expense transactions; an account representing the net income retained in a corporation.

Noncash Accounts

Accounts in financial accounting that represent transactions not involving physical cash, such as depreciation or credits.