All of the Following Are Disadvantages of Licensing EXCEPT

question 29

Multiple Choice

All of the following are disadvantages of licensing EXCEPT:

• A)the licensor reduces its potential profits gained from product sales.
• B)the foreign country gains employment by having the product manufactured locally.
• C)the licensor forgoes control of its product.
• D)should the licensee prove to be a poor choice, the name or reputation of the company may be harmed.
• E)the licensor may be creating its own competition.

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Definitions:

Property Tax Purposes

The use of property evaluation to determine the amount owed by property owners to municipal or county governments as property tax.

National Retail Chain

A series of retail stores operating under the same brand and management across multiple locations nationwide.

Counteroffer

A response to an offer in a negotiation that changes the terms in an attempt to reach a mutually agreeable contract.

Offer

A proposal by one party to another to enter into a contract, typically specifying terms and conditions.