Which of the Following Is a Drawback of Licensing

question 34

Multiple Choice

Which of the following is a drawback of licensing?

• A)Licensing becomes impractical in the face of barriers to investment.
• B)Licensing does not give a firm tight control over manufacturing,marketing,and strategy.
• C)Licensing entails the licensor to commit substantial financial resources.
• D)The licensor could potentially incur heavy pioneering costs.

---

Definitions:

Equality

The state or quality of being equal, especially in status, rights, and opportunities.

Debits And Credits

The two sides of every financial transaction in double-entry bookkeeping, with debits usually recorded on the left and credits on the right, used to ensure the accounting equation remains in balance.

Chart Of Accounts

A list of the accounts in the ledger.

Balance Sheet

An accounting summary that captures a firm's financial status at a particular instant, outlining the company's resources, obligations, and equity held by shareholders.