Licensing Would Be a Good Option for Firms in Which

question 10

Multiple Choice

Licensing would be a good option for firms in which of the following industries?

• A)High-technology industries in which protecting firm-specific expertise is of paramount importance and licensing is hazardous.
• B)Global oligopolies,in which competitive interdependence requires that multinational firms maintain tight control over foreign operations.
• C)Industries in which intense cost pressures require that multinational firms maintain tight control over foreign operations.
• D)In fragmented,low-technology industries in which globally dispersed manufacturing is not an option.

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Definitions:

Gross Spread

The difference between the underwriting expense of a security and the amount received from the selling group.

Offering Price

The price at which new shares are offered to the public by an issuer or by shareholders of the company.

Initial Public Offering (IPO)

The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company.

Underwriters

Professionals or entities that evaluate and assume the risk of another party, often in the context of issuing insurance policies or underwriting securities in financial markets.