What Is the Primary Advantage of Licensing

question 25

Multiple Choice

What is the primary advantage of licensing?

• A) It helps a firm avoid the development costs associated with opening a foreign market.
• B) It gives a firm the tight control over manufacturing, marketing, and strategy.
• C) It helps a firm achieve experience curve and location economies.
• D) It increases a firm's ability to utilize a coordinated strategy.

---

Definitions:

Notes Payable

Short-term or long-term liabilities in the form of written promises to pay a specified amount with interest by a certain date.

Fixed Assets/Sales Ratio

A financial metric that indicates how efficiently a company is using its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits, often used to make informed business decisions.

Financial Planning Models

Quantitative models used to project financial components such as revenue, expenses, and cash flow over a period, aiding in business strategy and decision-making.