Which Type of Agreement Is Believed to Reduce the Risks

question 91

Multiple Choice

Which type of agreement is believed to reduce the risks associated with licensing technological know-how?

• A)Franchise agreement
• B)Service-licensing agreement
• C)Lateral agreement
• D)Cross-licensing agreement

---

Definitions:

Direct Materials Budget

An estimation of the quantity and cost of direct materials necessary for production, matching the production budget.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Production Needs

The requirements necessary to manufacture products, including materials, labor, and machinery.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.