In the 1960s,RCA Licensed Its Leading-Edge Color Television Technology to a Number

question 122

Multiple Choice

In the 1960s,RCA licensed its leading-edge color television technology to a number of Japanese companies,which later took over the market.This demonstrates that licensing:

• A)is a better alternative to help companies from emerging economies to enhance their competitiveness and achieve growth.
• B)subscribes to the open source ideology which aids the development of technology unencumbered by market dynamics and fluctuations.
• C)may result in a firm's giving away valuable technological know-how to a potential foreign competitor.
• D)does not give a firm the tight control over manufacturing,marketing,and strategy in a foreign country that may be required to maximize its profitability.

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Definitions:

Return on Equity

A measure of a company's profitability that calculates how much profit is generated with the money shareholders have invested, reflecting financial performance and efficiency.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Owner's Equity

This financial term represents the owner’s interest in the assets of a business, calculated as the difference between the business assets and its liabilities.

Net Margin

A profitability ratio calculated as net income divided by revenue, indicating the percentage of each dollar of revenue that results in net profit.