Licensing Is Best Described As

question 61

Multiple Choice

Licensing is best described as:

• A)a nonequity method of international business in which an entrepreneur contracts his or her
• Management techniques and skills to a (foreign)purchasing company.
• B)a method of doing international business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners.
• C)a method that involves giving a foreign manufacturer the right to use a patent,technology,production process,or product in return for the payment of a royalty.
• D)an equity partnership that involves selling patents to foreign governments.

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Definitions:

Tax

A compulsory financial charge or other levy imposed by a government to fund public expenditures.

Demand Function

A mathematical representation showing the relationship between the quantity demanded of a good and its price, along with other factors affecting demand.

Supply Function

Represents the relationship between the quantity of a good that producers are willing to sell and the price of the good.

Quantity Supplied

The amount of a particular good or service that suppliers are willing and able to provide at a given price during a certain period.